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

ITC, ICS tie up to help Moroccan textile value chain

Textiles | On 21st Apr 2018

ITC, ICS tie up to help Moroccan textile value chain

The International Trade Centre (ITC) has partnered with ICS, which...

Bangladesh garment manufacturers call for fair pricing

Apparel/Garments | On 21st Apr 2018

Bangladesh garment manufacturers call for fair pricing

Bangladesh garment manufacturers want a ‘commensurate adjustment’ by...

Pak ministry proposes extension to PM package for 2018-19

Textiles | On 21st Apr 2018

Pak ministry proposes extension to PM package for 2018-19

Pakistani textile ministry has reportedly proposed extending the...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Tom Adeyoola

Describing itself as the best body shape and garment fit company in the...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Marten Alkhagen
Swerea IVF AB

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

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch 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