Ludhiana garment makers send missive to PM

Setting aside their differences, the garment manufacturers in Ludhiana, who have unified under common platform — MSME Garment Manufacturer Association of Ludhiana (MGMAL) — to fight their problems unitedly, sent a missive to the prime minister apprising him of their problems.

The garment manufacturers in Ludhiana who were delivering orders for many of the retail chains, were suffering on account of delayed payments by the buyers.

S K Jain, president, MGMAL said that this association has been formed to bridge the gap between suppliers (Ludhiana garment manufacturers) and buyers (major retail chains), to rake up issue pertaining to problems suppliers are facing .

The MGMAL members who already are irked over the delay in payments made by the buyers (majority of which are big retail chains) has alleged the rate of interest being charged by the banks was on the higher side and not affordable in the present situation.

According to MGMAL members, banks were charging 1% processing charges on loan and then charging the same amount for the renewal of the existing limits which was unjustified.They demanded, banks which have been delaying the credit of foreign remittances should be issued guidelines to credit foreign exchange remittances immediately, on receipt to reduce the bank rate of interest and to make the fund available for urgent needs.

Despite the central government floating several schemes for benefit of Small and Medium Scale Enterprises (SME), they have not been able to access the same, for awareness and knowledge of the MSME.

Jain added, it was not possible for the small and medium scale manufacturers to keep a track of all the latest schemes rolled out by the MSME department. He demanded, a special cell should be created with the District Industries Centres to provide timely information to the MSME sector about the schemes through the industrial associations, seminars and letters to the individual units.