A commerce ministry-led committee has made no decision on easing the bank guarantee requirement for yarn imports, as the matter remains sub judice. The development leaves garment exporters facing the existing cash-flow burden.
Decision Deferred Due to Pending Litigation
The committee, which met on Thursday (November 12), discussed a proposal to relax the bank guarantee requirement for yarn imports. However, upon learning that a textile mill had filed a court case over the issue, the committee refrained from making any decision. Consequently, the existing rules for yarn imports remain unchanged.Exporters Continue to Face Financial Strain
The lack of a decision means garment exporters will continue to bear the financial pressure of providing upfront bank guarantees for yarn imports without bond facility access. This ongoing requirement is straining their working capital.As the matter is sub judice, the committee has chosen to avoid legal complications by deferring any decision. A fresh decision on the issue may be possible following the next court hearing or upon receipt of judicial guidance.
