New Delhi: Hit hard by the COVID-19 pandemic, exporters have sought relief from the government and banks to deal with the situation, a representive of a trade body said on Tuesday. Chairman of CII National Committee on Exports and Imports, Sanjay Budhia, said exporters are looking forward to extension of interest subvention scheme that expired on March 31, among other measures.
"CII and all industry associations are asking for renewal of the scheme as interest rates in India are as high as 9 to 10 per cent," Budhia said.
Indian exporters should get cost of credit at international rates to compete with Chinese exports, he said. Budhia said China has announced export rebate of up to 13 per cent and also devalued its currency. Another exporters' body, Engineering Exports Promotion
Council (EEPC), has also made a case for term loan extension. "Working capital is an issue and term loan extension is what the exporters are looking for," Executive Director of EEPC Suranjan Gupta said.
On rolling over of forward contracts, Budhia said due to the lockdown, there are no shipments taking place. "The exporters are seeking rollover of forward contracts and they should not be penalized for forward cover taken as non-shipment of goods is not leading to realisation of export proceeds," he said.
Leading public sector lender State Bank of India said some packages are being worked out for exporters, adding that these have to be within the guidelines of the RBI and other regulations. "We are already extending an emergency line of fund-based limit and non-fund based limit to the MSMEs," an official of the bank said.
He also said exporters will be granted extension of time for export realisation and no interest charges will apply for making deferred payments up to three months.
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