Garment firms concerned over rate hike

With the interest rates continuing to surge, exporters will be directly impacted as the garment prices have been negotiated and fixed based on the previous production cost, Tirupur Exporters' Association (TEA) said.

Lending rates of most private banks are at 14 to 14.75 per cent, while the public sector banks at 12.25 to 12.5 per cent. With this increased rate, it would be difficult for the garment exporters to sustain in the global market since the competitors based in other countries are getting loans at lower interest rates, TEA president, A Shaktivel, said.

Another major concern was the measure came at a time when the rupee was appreciating against US dollar.