Worried over the impact of demonetisation of high value notes on production chain, Commerce Minister Nirmala Sitharaman today assured exporters that she would take up their demand of increasing the cash withdrawal limit...
Worried over the impact of demonetisation of high value notes on production chain, Commerce Minister Nirmala Sitharaman today assured exporters that she would take up their demand of increasing the cash withdrawal limit with the Finance Minister.
The issue was raised by export promotion councils during their meeting with Sitharaman here.
“They voiced the short term difficulty that they are facing. Majority stated that a segment of their activity like procurement of raw material is happening to a large extent in cash,” she told reporters.
Exporters demanded an increase in the withdrawal limit from Rs 50,000 a week to up to Rs 5 lakh, she said.
“In labour intensive sectors like carpet and handloom, working is dependent on cash withdrawal. Their demand is to increase this limit to Rs 3 lakh or Rs 4 lakh or Rs 5 lakh,” Sitharaman said.
“We have assured them that we will take very quick and well compiled report to the Finance Ministry so that quick remedial solutions are offered. We will pitch for them and I am sure that the Finance Ministry will give us a sympathetic hearing.
“I will definitely draw the attention of the Finance Minister (Arun Jaitley) on the cash withdrawal limit,” she added.
Certain sectors informed that because of this cash limit “some of them have preferred closing of the units for a week and some of them reducing the capacities of production from 100 or 70 per cent to about 35 or 40 per cent”.
Others felt that this month’s output might have a bearing, she added.
The government this month demonetised high value notes of Rs 1000/500 to flush out black money. The sudden move led to people thronging at banks and ATMs to deposit and exchange old notes causing hardships on an enormous scale and impacting business operations across the country.