Home / Knowledge / News / Textiles / Tirupur exporters seek RBI help for mitigating losses
Tirupur exporters seek RBI help for mitigating losses
08
Jul '08
In the last one year, a number of exporters had entered into exotic forex derivative deals with banks like ICICI Bank, Axis Bank, HDFC Bank, Kotak Mahindra Bank and Yes Bank. Many of these contracts are turning in to steep losses for the exporters due to the unexpected fluctuation in the forex market.

A representative team from the exporting community in Tirupur under the banner of Forex Derivatives Consumers' Forum met Mr Y V Reddy, Reserve Bank of India Governor.

Members of the team made a plea to the Reserve Bank Governor asking him to lend a helping hand for losses caused by speculative foreign exchange derivates deal struck with private banks.

Exporters in Tirupur have estimated that the cumulative loss due to forex derivative contracts could be somewhere between Rs2000-6000 million.

Meeting the Governor turned out be quite fruitful as he not only paid heed to the serious problems faced by the exporters but also assured them his 'moral support'.

In a bid to straighten out things, the Tirupur exporters have agreed to appoint a fact finding mission and place inputs collected by the mission with the central bank for appropriate action.

Fibre2fashion interviewed the Forex Derivatives Consumers' Forum about the outcome of the meeting with Mr Reddy. The forum replied; “They have put in a request to set up a high power committee to investigate the entire loss of derivative contracts that were entered into by the banks with various Indian Exporters across the country in violation of RBI's circulars. Instructions have also been given to bankers to settle the issue in favor of the exporters and not to debit the resultant loss in regular account of the customer.”

Further, exporters have also requested the banks not to classify them as non-performing assets because that would halt any further credit flow from the banks.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Mark Paterson
Technical Absorbents Ltd

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

Marten Alkhagen
Swerea IVF AB

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

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Sanjukta Dutta
Sanjukta's Studio

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

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
March 2017

March 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search