exporters in vicious circle
Encircled by many problems, non-availability of funds is a growing challenge for most of the exporters. And one of the main reasons for the same is nonclearance of GST refund. As a breathing space, exporters across the country started receiving
RoSL refunds, but this is not proving to be a big support for them. In discussion with Apparel Online, exporters shared that all available sources of funds are squeezed completely. Bank limits have already been utilised, private money lenders also don’t have enough liquidity after demonetization and now when they do have some amount with them, they are not willing to give loan to apparel exporters as they know their conditions.
One exporter informed that he was forced to sell his personal property to run the factory. Exporters share that they cannot stop or shut their business and also do not want to be in a situation where their buyer passes orders to other exporters. So they are not having any other option, but to keep the factory running at all cost. Sadly, there is no solution at the exporter’s end and the only way they see any relief is that the Government should come forward in support. One Ludhiana-based exporter who did not want to be quoted, shared, “So far we have received just Rs. 5 lakh under RoSL while total amount is nearly Rs. 50 lakh. Orders are already less; and even out of that we are doing limited orders just because of non-availability of funds.” The situation is more or less the same for all and the overall experience of exporters across the country is on similar lines. More than today, these exporters are worried about the future. “Even once if we say no to labour, they will never come back again, as majority of labour is migrant from other states. It will have negative impact whenever we get orders in the future,” reasoned a worried exporter.
This year, many export houses have seen a negative impact on their balance sheet which will also reflect on their bank limits. It is also going to be very difficult for exporters to gain future orders.