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Tirupur garment manufacturers question move to increase freight charges

Garment manufacturers and traders have questioned the logic of planned move by truck owners to increase rentals, as a consequent to the recent increase in fuel prices. They feel, any further increase in transportation charges could make the products from Tirupur knitwear cluster uncompetitive in other parts of the country. K.S. Babuji, Secretary of Small Cotton Shirt and Inner Wear Manufacturers Association (SISMA) says according to the information received by them, truck operators are planning to increase their fare to Rs 300 for every 100 km.

Babuji opined that the predominant small/medium scale hosiery manufacturers in Tirupur cluster were worried over the attitude of both the government machinery and the truck operators when it comes to fuel price mechanism. He said that while truck operators raise the charges when fuel prices go up, but they do not lower their rates when fuel prices decrease.

Upon questioning about the same, Tirupur Lorry Owners Association president C N Ramsamy hinted at the possibility of increasing the charges but stated that no decision was taken on the scale of hike.

The apparel manufacturers are of the feeling that the sake prices of fuel were high only because of the exorbitant levy of taxes and duties. R M Senthilkumar, former chairman of Institute of Chartered Accountants of India (Tirupur chapter), does not see any chance of the government bringing down the duties and taxes on fuel as it was considered as a revenue generation tool for the exchequer. However, he is of the view that some corrections need to be made as otherwise high fuel prices could trigger an inflationary trend.

 
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