Tirupur exporters want immediate release of duty drawback amount.

COIMBATORE: Garment exporters in Tirupur, whose fortunes are on the upswing following a recovery in demand in key markets like the US, are now facing a new problem.

Exporters say they have not received duty drawbacks, which is a rebate of duty/ tax on imported materials used as inputs for manufacturing goods, for the past four months.

"We wish to note that the exporting units have not received duty drawback rates for the past four months and this has affected their working capital and production plan significantly," Tirupur Exporters' Association (TEA) president A Sakthivel said in a letter to Union Finance Minister P Chidambaram.

The total pending duty drawback amount for the Tirupur exporting units alone works out to about Rs.450 crore, he claimed. Due to financial strain, exporting units are now apprehensive about taking up orders confidently and this would impact growth being experienced in the current financial year, Sakthivel stated.

"It is very much needed and exporting units are eagerly waiting for the duty drawback," he said.

Considering the requirements of industry and export growth, the duty drawback amount should be released immediately as it would help maintain the growth trend of export units in the knitwear town, Sakthivel said.

Source : timesofindia.indiatimes.com