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Exporters caught between 'devil & deep sea'
Apr '09
The global recessionary trends have brought with it a lot of other headaches, other than the slowdown in orders. Exporters across the globe now also have to contend with protectionist measures like antidumping duty.

Anti-dumping duty on a particular product is adopted by any country, when it is found subject to a suitable investigation that the product is being sold in their country at a price considerably lower than those prevailing in the exporting country.

Exporters across the globe, whether it be from any country have been forced to cut back prices to the maximum possible by their respective buyers. In a bid to survive and keep their manufacturing units operational, these exporters are taking orders, even by incurring losses.

But, these low prices are becoming nemesis for the exporters, who are at the receiving end of the importing countries, who are endorsing anti-dumping duties on the premise that import prices are lower than those prevailing in the markets of the exporters.

Experts aver that, these anti-dumping duties do not affect the exporter in question to a large extent, but affects the sector as a whole, which has to bear the brunt of these protectionist measures and also loose market shares, built with toil over the years.

Big retail companies which are sourcing out large orders to countries in Asia are squeezing out every bit of margin of the exporter with the threat of taking the orders elsewhere. The exporters have been typically caught between what is called 'devil and the deep sea'.

Fibre2fashion News Desk - India

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