Tirupur, Dec 14 (UNI) Tirupur Exporters Association (TEA) today urged Union Finance Minister P Chidambaram to increase duty drawback rates by another three per cent to sustain in the global market and make the optimum utilisation of the exporting units.

In a letter to the Union Minister, TEA President A Sakthivel thanked him for increasing the duty drawback rates by one per cent for cotton knitwear products at a time when the export was showing a declining trend and dismal performance due to appreciation of Rupee against Dollar.

Mr Sakthivel said though the measure would be helpful to the exporters, the impact was severe on the exporting units.

The TEA had asked the members to cut down the cost in all spheres and enhance the productivity to become globally competitive, as per the Union Minister's advice, he said.

Tirupur knitwear exporters were taking efforts to produce Value-Added garments. The members were also conducting a seminars with various banks to make exporters familiar with the hedging mechanism enabling them to use such tools to protect themselves from the currency fluctuation.

He also urged Mr Chidambaram to fix the value of rupee against dollar at Rs 42 for one year and exempt exporters from Service and Fringe Benefit Tax.

UNI