In an official press release to Nirmala Sitharaman, Union Minister of Finance, the association stated that 20% of credit under the Emergency Credit Line Guarantee Scheme should be safeguarded to rescue the Trippur knitwear garment exporting businesses, especially MSMEs from their current financial crisis. The key causes of the issue were less booking orders, payment delays, non-acceptance of booked orders, and shipping time lag.
Raja M Shanmugham, the President of TEA, says the Russian-Ukraine War has adversely affected the global trade, just as Trippur’s Knitwear Exporting MSMEs struggle to recover from effects of the COVID pandemic and cotton yarn price hike.
The future of Trippur Knitwear Exporting MSMEs was a concern for Shanmugham. Moreover, the association has urged RBI Governor Shaktikanta Das to provide leniency on NPA norms for MSMEs whose bad loans have crossed the threshold duration of 90 days.