Rupee appreciation has been a major issue in the textile industry for past few months now, especially for export sector. Exports have suffered significant losses and many organizations have persistently demanded help from the Government.
Union Ministry has also recognized to magnitude of this situation and is considering different beneficial schemes. Recently, duty drawback and DEPB rates were raised so as to support the struggling industry.
So, what do the industry players think about this revision? Mr Natrajan, Vice President of Fenner Textiles tells Fibre2fashion, “Duty drawback and DEPB rates are good as compensation when the Dollar declines. But this will not help the companies with pre-placed orders. However, Rupee appreciation has affected exporters badly and this will provide slight relief for them.”
However, Emtex Industries Director Mr Ganesh Khemka believes, “This relief is not enough as most businesses have been affected severely and the situation is getting worse, day by day. Currently, DEPB rates stand at 5.3 percent for fabric items and duty drawback is Rs28 per kg. These rates should be revised again as Rupee is getting stronger.”
Mr Venketesh, Managing Director (MD) of National Sewing Thread, states, “Rupee has grown stronger by 3 percent as against Dollar. Even after drawback and DEPB rate revision, discrepancy of around 5 percent still exists between production and selling. This only means that compensations are not yielding the required benefits.”
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