Tirupur Exporters Association disappointed at RBI's mid-quarter monetary policy

KOCHI: Tirupur Exporters Association has expressed disappointment at RBI's mid quarter monetary policy. The association president Dr A Sakthivel said after continuous increase in the policy rate by 13 times, the RBI had cut the rate by 50 basis points only in the last revision. In the current situation a reduction of at least 50 points was expected, he said.

The garment exporting units are facing a crisis of confidence and are threatened by a challenging global market environment. The rate cut is necessary to give a leg up to the exports and help to sustain it in the global market.

He said the RBI had decided to enhance the eligible amount of the export credit refinance facility for scheduled banks from 15 % of the outstanding export credit eligible for refinance to 50 %. Though this is aimed at increasing liquidity and encouraging banks to step up credit flow to the export sector, the cost of fund is a crucial factor that has not be addressed.

Dr A Sakthivel said the requisition for a separate chapter for exports has not been given attention in this review too.