Tiruppur Exporters’ Association (TEA) appealed to the finance ministry to start a rupee-rouble payment mechanism with Russia.
Coimbatore
Tiruppur Exporters’ Association (TEA) has appealed to the finance ministry to start a rupee-rouble payment mechanism with Russia.
In a letter to finance minister Nirmala Sitharaman, TEA president Raja M Shanmugham said the payments received by MSMEs in Tirupur from buyers in Russia have been stopped due to sanctions and exclusion of Russian banks from the Swift platform. Due to payment delays, MSMEs are facing operational difficulty. Knitwear products worth Rs 70 crore are exported to the Russian market from Tirupur every year. “Though buyers are willing to pay, they cannot complete payment due to the sanctions. To overcome the ongoing crisis and the uncertainty, the finance minister should intervene to commence a rupee-rouble trade mechanism with Russia to receive back exports’ proceeds,†the official said. “It will not only help MSMEs at this hour of crisis, but also help to push exports.â€
The MSME units in Tirupur have been exporting knitwear garments to Russia and they were receiving payment in Euros and US dollars, which have now totally stopped as part of the sanctions to exclude Russian banks from the global payments system SWIFT, Shanmugham added.
Due to payments getting stuck, the MSMEs are facing operational difficulties, and also their sustenance in the business is in question, he further said.
Source: The Times Of India
Image Source: Google Images
Also Read: