MUMBAI, February 23: Garmemt exports, country's largest forex earning trade category, will soon come to a grinding halt. Dogged by the government's reluctance to release duty drawback since October, export units are facing severe financial crisis.The south-east Asian currency crisis has already sent their price plunging. Now, without the drawback arrears, their financial muscle has shrivelled rendering export units uncompetitive.In a press release here on Monday, the All India Garment Exporters and Manufacturers Association has blamed the government for not clearing the drawback arrears. Exporters in Mumbai and Chennai are the worst hit with arrears payable to them amounting to a staggering Rs 500 crore.Despite the association's efforts to convince the government, authorities had been turning a blind eye citing budgetary constraints.
If the government sticks to its guns, the next four months will require an additional Rs 1,400 crore to be paid as duty drawback on the possible export amount of Rs 8,000crore, the release adds.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
