Home / Knowledge / News / Apparel/Garments / Rupee depreciation troubles Indian apparel exporters

Rupee depreciation troubles Indian apparel exporters

31
May '12
Normally, any depreciation in the value of the Indian currency against the US dollar is welcomed by garment exporters. But, not so this time as the situation is different.

The value of rupee has fallen so sharply during the last few weeks that the importers are now seeking renegotiation of the contracts already singed by them a month or two ago.

The rupee-dollar conversion rate was at above Rs. 56.16 per one US dollar on May 30. In comparison, the rupee was trading at Rs. 51.84 per one US dollar on April 18 this year.

Speaking to fibre2fashion, Mr. A Sakthivel, Chairman of Apparel Export Promotion Council (AEPC), said, “Exporters benefit if the weakening of rupee is up to 3-4 percent. But, if the weakening is more than that, buyers ask for reduction in prices.”

“When an export contract is signed, exporters usually buy dollars for one-third of the booked amount on the same day when the order is booked. For another one-third amount, they hedge the currency in the forward market. So, it is for the remaining one-third amount that the importers are seeking renegotiation,” he explains.

In financial year 2010-11, India's apparel exports stood at Rs. 11.4 billion. The garment exports increased to about Rs. 13.4 billion in 2011-12.

“However, the growth in clothing exports in 2011-12 was not due to rise in volume of exports. It was because of increase in prices of raw material and weakening of the rupee,” reveals Mr. Sakthivel.

“At present, the order book status is not looking bright for most apparel exporters. We have submitted a memorandum to the Government seeking some benefits,” he mentions.

Fibre2fashion News Desk - India


Must ReadView All

Pic: Shutterstock

Textiles | On 12th May 2021

Economic recovery under threat amid surging COVID cases: UN

While the global growth outlook has improved, led by robust rebound...

Pic: 2p2play / Shutterstock.com

Retail | On 12th May 2021

Retailers need to consider changes as US emerges from pandemic: NPD

Millions of new remote and hybrid-remote workers, kids returning to...

Pic: Shutterstock

Textiles | On 12th May 2021

Uzbekistan exported textile products worth $637.7 million in Q1 2021

Uzbekistan exported textile products worth $637.7 million to 54...

Interviews View All

Textile Industry, Head honchos

Textile Industry
Head honchos

Consumer sentiment will be conservative after lockdown

Textile Industry, Head honchos

Textile Industry
Head honchos

Verticals like fast fashion won’t completely adopt personalisation on...

Textile Industry, Head honchos

Textile Industry
Head honchos

Great step towards realising end goal of 'AtmaNirbhar Bharat'

Vikram Juneja,

Vikram Juneja

Jaquard is a training institute providing a highly specialised training...

Seema Mishra,

Seema Mishra

Set up in January 2020 by <b>Seema Mishra</b>, the Kasrawad Art Cluster...

Barry Goodwin,

Barry Goodwin

UK based Amba Projex Ltd designs, manufactures, and installs industrial...

Michael Jaenecke, Messe Frankfurt

Michael Jaenecke
Messe Frankfurt

From May 14 to 17, international exhibitors will present the entire...

Brad Holschuh, Wearable Technology Lab, University of Minnesota

Brad Holschuh
Wearable Technology Lab, University of Minnesota

A new study led by researchers at the University of Minnesota's Design of...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Sarah Denise Cordery, Sarah Denise Studio

Sarah Denise Cordery
Sarah Denise Studio

Manchester, England-based Sarah Denise Studio provides relevant fashion...

Sailesh Singhania, Sailesh Singhania Label

Sailesh Singhania
Sailesh Singhania Label

The Sailesh Singhania label was created to promote handwoven sarees and...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

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


May 2021

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


Advanced Search