EPCH Urges Extension of Export realization period to 360-Days – without penal interest

Delhi/NCR – 08th September’2025 – The Export Promotion Council for Handicrafts (EPCH) has urged for immediate relief measures to preserve liquidity and competitiveness for India’s handicrafts exporters amid extended buyer payment cycles and global headwinds. In the current scenario, delays in realization of export proceeds are common and often beyond the control of exporters.

Highlighting the exporters concern Dr. Neeraj Khanna, Chairman-EPCH shared that “Handicrafts exporters are contending with a challenging global environment marked by geopolitical tensions, reciprocal tariffs in key markets, elevated logistics costs and uncertain demand factors that are extending buyer payment cycles beyond exporters control. Under current norms, realisation beyond 270 days attracts penal interest, creating avoidable stress precisely when working capital is most constrained. EPCH urges for a relief framework that sets out a 360-day export proceeds realisation window with uniform AD-bank implementation with waiver of penal interest on substantiated delays.”

Dr. Rakesh Kumar, Director General in the role of Chief Mentor – EPCH and Chairman – IEML shared that “Continuing our engagement with policymakers to keep MSME exporters competitive, we have requested a coordinated relief package with the Government of India which includes Extending credit realization timelines and one-year moratorium covering both principal and interest on other loans”.

Dr. Kumar further added “Exporters are battling an unprecedented situation marked by high tariffs, shipment delays, and rising costs. Without timely policy support, even fundamentally strong businesses risk being classified as NPAs. Extending credit realization timelines and granting a moratorium on loan repayments will give exporters the flexibility to diversify markets, comply with new regulations, and continue contributing to India’s foreign exchange earnings.”