Home / Knowledge / News / Apparel/Garments / 'Forex dealers should reimburse exporters' - Mr Vaid, AEPC
'Forex dealers should reimburse exporters' - Mr Vaid, AEPC
23
Dec '08
Mr Rakesh Vaid, Chairman, AEPC
Mr Rakesh Vaid, Chairman, AEPC
The Apparel Export Promotion Council (AEPC) said today that many garment exporters suffered heavy losses in recent weeks due to using the derivative mode in foreign exchange market.

"The industry has faced financial losses on account of derivative option offered by various authorised dealers, a scheme duly approved by the Reserve Bank of India (RBI)," said AEPC's chairman Rakesh Vaid.

The quantum loss is close to eight to ten per cent of the export turnover where exporters used the derivative mode to the extent of 25 to 30 per cent, he said in letters to Prime Minister Manmohan Singh, Commerce Minister Kamal Nath and Textiles Minister Shankersinh Vaghela.

Mr Vaid said the authorised forex dealers should be asked to share half of their profits with those exporters from whom they have earned this amount. "Banks have made enormous profits at the cost of garment exporters though they have not lost when the currency remained stable."

Till April last year, garment exporters were exposed to volatile currency market fluctuations. To safeguard their interests, authorised dealers introduced options like derivatives and forward bookings. Exporters have to surrender twice the quantum of foreign currency in case the rupee depreciates over the rate agreed in the derivative mode.

"Since the dollar, euro and other currencies were not projected to depreciate against the rupee, exporters had no option but to opt for derivatives," said Mr Vaid. Various schemes approved by the RBI led many garment exporters to opt for them.

With the Indian currency depreciating more than 20 per cent in calendar year 2008, some experts say that losses from complex derivative products could wipe out their turnover in many cases. Portfolio investors took out more than 14 billion dollars from Indian equity markets as the global financial crisis escalated, causing the rupee to fall sharply and crossing Rs 50 to a dollar at one point.

The AEPC chairman said the apparel export sector employs over seven million people but is suffering heavily due to the global economic recession and consequent falling sales in the United States and Europe. He hoped the government will soon come up with another stimulus package for the revival of textile and clothing industry.

India is the sixth largest exporter of readymade garments worldwide. Nearly 9.7 billion dollars worth of apparels were exported to over 100 countries last year. The AEPC has more than 8,000 small, medium and large exporters as its members.

Apparel Export Promotion Council


Must ReadView All

Global economic upswing became broader & stronger: IMF

Textiles | On 19th Apr 2018

Global economic upswing became broader & stronger: IMF

The global economic upswing that began around mid-2016 has become...

Courtesy: ITMA

Textiles | On 19th Apr 2018

ITMA 2019 expanding space due to overwhelming response

Due to overwhelming response, the exhibition space has been increased ...

BIDA’s Europe trip to showcase a different Bangladesh

Apparel/Garments | On 19th Apr 2018

BIDA’s Europe trip to showcase a different Bangladesh

The Bangladesh Investment Development Authority (BIDA) is taking a...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Harsh Shah

Fynd is the central online shopping destination for fashion, offering...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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

Leave your Comments


April 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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
7.8%
Skip
9.7%

Total Votes: 103


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