Exporters express concern over rupee appreciation
The rupee touching a nine-year record high on Monday further unnerved exporters, who fear they would lose their market to competitive China and it will be difficult to control the situation.
By PTI |
NEW DELHI: The rupee touching a nine-year record high on Monday further unnerved exporters, who fear they would lose their market to competitive China and it will be difficult to control the situation.
"We have made several requests to the government and something needs to be done before it is too late and before our business goes into China. If that happens, it would not be easy to regain our positions and our market," FIEO Committee on International Trade and Export Promotion Convenor Subhash Mittal said here.
He said the situation is going from bad to worse with no relief from the government.
If this situation continues, at least 10-15 per cent of the exporters, especially the new ones and those in the textile business, would have to wind up their business by the end of the year, Mittal said adding that the government needs to wake up and do something about the situation.
The rupee on Monday opened sharply higher and crossed a nine-year-high to touch Rs 40.55 against the US currency.
Synthetic and Rayon Textiles Export Promotion Council Chairman Sanjeev Saran said the 24 per cent growth in export of man-made fibre textile in 2006-07 may fizzle out in the wake of the appreciating rupee
"Competitiveness of Indian man made fibre in the international market has been significantly eroded. The exporters cannot pass on the burden of hardening rupee to the buyers because contracts have already been negotiated and prices cannot be reworked," Saran said.
During the last three months, currencies of competing countries like China and Indonesia remained almost unchanged.
"This puts the Indian exporters in a tight spot and may also lead to diversion of business," Saran said.
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