Fund crunch;

ex­porters in vi­cious cir­cle

Apparel Online - - Industry Wire -

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.

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