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

Apparel/Garments | On 28th Jul 2017

DuPont launches new stretchable electronic inks, films

DuPont Advanced Materials has announced availability of its newest...

Textiles | On 28th Jul 2017

Clariant, Huntsman present update on planned merger

Clariant and Huntsman Corporation have presented a first update on...

Apparel/Garments | On 28th Jul 2017

Columbia Sportswear posts Q2 2017 net sales of $398.9 mn

Columbia Sportswear Company has recorded net sales of $398.9 million...

Interviews View All

Headhonchos
Indian fashion industry

Cotton consumption will keep growing in the Indian fashion industry

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Urs Stalder
Sanitized AG

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Eric Scholler
Groz-Beckert

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

Igor Chapurin
Chapurin

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

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Nisha Chanda
Whistling Woods International School of Fashion

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

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
61.1%
No
22.2%
Skip
16.7%

Total Votes: 18

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
33.3%
No
44.4%
Skip
22.2%

Total Votes: 18

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
83.3%
No
5.6%
Skip
11.1%

Total Votes: 18

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
50.0%
No
11.1%
Skip
38.9%

Total Votes: 18


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



X