Was expecting cut in interest rates after govt measures: A Sakthivel

President, Tirupur Exporters Association reacted to the RBI Monetary Policy

A Sakthivel, president, Tirupur Exporters Association representing the Rs 12,500 crore knitwear exporters from Tirupur,  said the garment exporting sector was expecting for reduction in interest rate after the measures taken by the Government of India and added the RBI’s continuous stance on interest rate will trigger for losing of competitiveness of export sector in the global market when our competing countries are maintaining interest rate comparatively lower than us.

RBI in its over view on macro economic and monitory developments second quarter review 2012-13 released yesterday has stated that major exporting sectors including textiles and textile products have been significantly affected due to weak external demand and also noted the median lending rate ranges from 10.5% to 15.38% for domestic banks.

Against this background, Sakthivel pointed out that with this level of higher cost of fund, the cost of production has proportionately increased and it is the cause for concern for the exporting sector.

He  was apprehensive and stated that it looks challenging for the garment sector achieving the export target of $ 18 Billion in 2012-13.

He appealed to RBI to come out with a special chapter for export sector to keep the reduced interest rates, as like agriculture sector.