Tirupur exporters are urging the rate of duty drawback for the garment sector to be around 4.5 per cent as against the current two per cent. The industry rate of duty drawback usually announced in September/October has not been announced this year. One reason for the delay in announcement could be the rupee depreciation against the dollar.

After softening of crude oil prices, the rupee has been declining against the dollar. The trend is expected to continue. But the benefit of rupee depreciation has been short-lived and the knitwear exporters are already feeling the pinch.

In the first half of the current financial year, total knitwear exports from India fell 10.8 per cent as against the corresponding period in the previous year. For the same period knitwear exports from Tirupur fell by 11 per cent.

Exporters in Tirupur have also been awaiting their ROSL (Rebate on State Levies) refunds for three months. For the Tirupur knitwear cluster alone, the pending ROSL claims (1.7 per cent free on board worth exports) work out to be Rs 105 crores.

Tirupur exporters also want India to expedite free trade agreement with Russia, which has given Bangladesh the duty-free garment facility, and they hope India can also avail of this facility.