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

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Eric Scholler
Groz-Beckert

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

Mike Hoffman
Gildan Activewear SRL

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

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

July 2017

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

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

Yes No

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

Yes No

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


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



X