Coir industry hit by rupee appreciation
The Coir industry has expressed concern over the appreciation of rupee, especially during the months of April and May, in which coir exports dwindled by around 19.22 per cent.
By PTI |
KOCHI: The Coir industry has expressed concern over the appreciation of rupee, especially during the months of April and May, in which coir exports dwindled by around 19.22 per cent.
In a memorandum to RBI Governor Dr Y V Reddy, the Coir Board Chairman A C Jose urged for a rein in rupee appreciation, which had hit coir exports. "The appreciation was more than 12 per cent since August 2006," a Coir Board release said.
During mid-2002 the rupee was ruling around 49. It has come down to 40.50 level, which showed an appreciation of one per cent during the last five years, but the present slide of 12 per cent during August 2006 -April 2007 is causing unease amongst the coir export community, it said.
"There was a stupendous growth of more than Rs 100 crore to touch Rs 605.16 crore during 2006-07. During a month there was shipment of Rs 50 crore on an average. However, during the last two months, the shipments have been low, causing grave concern."
If the stalemate of rupee escalation is allowed to continue, there would be serious economic crisis in the coir industry and the cascading consequences would be severe.
"The rupee appreciation, enhancement of PLR rate in respect of packing credit, term loan, pre-shipmen/post- shipment credit by banks, unrebated service tax and fringe benefit tax etc has put the coir industry in doldrums, all these will erode the profit margin making coir exports unattractive," the release, a copy of which was released to the press, said.
In a memorandum to RBI Governor Dr Y V Reddy, the Coir Board Chairman A C Jose urged for a rein in rupee appreciation, which had hit coir exports. "The appreciation was more than 12 per cent since August 2006," a Coir Board release said.
During mid-2002 the rupee was ruling around 49. It has come down to 40.50 level, which showed an appreciation of one per cent during the last five years, but the present slide of 12 per cent during August 2006 -April 2007 is causing unease amongst the coir export community, it said.
"There was a stupendous growth of more than Rs 100 crore to touch Rs 605.16 crore during 2006-07. During a month there was shipment of Rs 50 crore on an average. However, during the last two months, the shipments have been low, causing grave concern."
If the stalemate of rupee escalation is allowed to continue, there would be serious economic crisis in the coir industry and the cascading consequences would be severe.
"The rupee appreciation, enhancement of PLR rate in respect of packing credit, term loan, pre-shipmen/post- shipment credit by banks, unrebated service tax and fringe benefit tax etc has put the coir industry in doldrums, all these will erode the profit margin making coir exports unattractive," the release, a copy of which was released to the press, said.
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