Coimbatore, Jun 18 (PTI) Tirupur Exporters Association (TEA) today expressed its disappointment with RBI's Mid Quarter Monetary Review for keeping key policy rates unchanged. Reacting to the policy, A Sakthivel, President, TEA said after continuous increase in the policy rate by 13 times, only in the last revision RBI reduced the rate by 50 basis points. When the garment exporting units were in the crisis and facing the challenging global market environment, the rate cut was necessary to give fillip to the exports and sustain in the global market. Though RBI has decided to enhance the eligible amount of Export Credit Refinance facility for scheduled banks from 15 per cent of the outstanding export credit eligible for refinance to 50 per cent to further increase the availability of liquidity and encourage banks to increase credit flow to the export sector the cost of fund was a crux of the issue. Sakthivel, who is also chairman Apparel Export and Promotion Council, said that the requisition for a Separate Chapter for Exports has been not addressed in these review also.
