Hosiery exporters seek extension of loan moratorium by 6 months up to March

Exporters said the financial position of the knitwear garment units in Tirupur has not improved and they were not in a position to repay the loan and interest

The Tirupur Exporters Association (TEA) on Friday appealed for extension of the moratorium for term loan repayments by six months up to March next year.

In a representation to Prime Minister Narendra Modi, it requested him to advise the Reserve Bank of India (RBI) to extend the moratorium, saying the financial position of the knitwear garment units in Tirupur has not improved and they were not in a position to repay the loan and interest.

TEA President Raja M Shanmugham said that in the first quarter of current fiscal, the All India Knitwear Exports clocked Rs. 5,355 crore against Rs.13,570 crore recorded in the corresponding period of last year with a negative growth of 60.54 per cent.

This reflected the status of knitwear garment exporting units, he said adding extension of moratorium will not only be beneficial to the industry and banks, but also to the well being of the countrys economy.

TEA has sent a copy of the representation to Union Finance Minister Nirmala Sitharaman, Minister of Corporate Affairs Nitin Gadkari, Minister of Road Transport and Micro, Small and Medium Enterprises and RBI Governor Shaktikanta Das.

The RBI initially announced three months moratorium on repayment of term loans from March this year in view of the coronavirus lockdown. Later it was extended by another three months till August 31.