Knitwear makers in Tirupur expressed disappointment over the reduction of duty drawback rates on readymade garments (RMG). The Union government recently slashed the rates on cotton-made readymade garments from 2 per cent to 1.9 per cent and also the rates on many other RMG.
While change may have been minimal, it has not gone well with industrialists as the sector had recorded negative growth last financial year due to demonetization and GST. The Tirupur Exporters’ Association has been insisting the government to increase the duty drawback rate from 2-2.5 per cent to 4.5 per cent. The move sends a wrong message, especially when the exporters were struggling to compete because of absence of a level-playing field in the international RMG market.
The government has also increased the rates on cotton and cotton yarns by 0.35 per cent and 0.5 per cent respectively.