Home / Knowledge / News / Apparel/Garments / Rupee depreciation troubles Indian apparel exporters
Rupee depreciation troubles Indian apparel exporters
31
May '12
Normally, any depreciation in the value of the Indian currency against the US dollar is welcomed by garment exporters. But, not so this time as the situation is different.

The value of rupee has fallen so sharply during the last few weeks that the importers are now seeking renegotiation of the contracts already singed by them a month or two ago.

The rupee-dollar conversion rate was at above Rs. 56.16 per one US dollar on May 30. In comparison, the rupee was trading at Rs. 51.84 per one US dollar on April 18 this year.

Speaking to fibre2fashion, Mr. A Sakthivel, Chairman of Apparel Export Promotion Council (AEPC), said, “Exporters benefit if the weakening of rupee is up to 3-4 percent. But, if the weakening is more than that, buyers ask for reduction in prices.”

“When an export contract is signed, exporters usually buy dollars for one-third of the booked amount on the same day when the order is booked. For another one-third amount, they hedge the currency in the forward market. So, it is for the remaining one-third amount that the importers are seeking renegotiation,” he explains.

In financial year 2010-11, India's apparel exports stood at Rs. 11.4 billion. The garment exports increased to about Rs. 13.4 billion in 2011-12.

“However, the growth in clothing exports in 2011-12 was not due to rise in volume of exports. It was because of increase in prices of raw material and weakening of the rupee,” reveals Mr. Sakthivel.

“At present, the order book status is not looking bright for most apparel exporters. We have submitted a memorandum to the Government seeking some benefits,” he mentions.

Fibre2fashion News Desk - India


Must ReadView All

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

JD.com to invest $3.1 bn to revive industry in NE China

Apparel/Garments | On 22nd Jan 2018

JD.com to invest $3.1 bn to revive industry in NE China

To back the government’s campaign to revitalize the traditional...

SIMA makes pre-budget recommendations to Indian govt

Textiles | On 22nd Jan 2018

SIMA makes pre-budget recommendations to Indian govt

Exemption of 5 per cent goods and services tax (GST) on raw cotton,...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Amardeep Singh
Orient Craft

'In export markets, the trend in terms of embroidery, is towards matte...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search