Home / Knowledge / News / Textiles / Current appreciation to hit small exporters: FIEO

Current appreciation to hit small exporters: FIEO

20
Oct '09
Mr A Sakthivel, President, Federation of Indian Export Organisations (FIEO) while commenting on the volatility of the rupee stated that (a) the rupee was bolstered or fell with an increase/decrease in the Indian benchmark SENSEX and (b) dollar weakness/relative strength of Asian currencies and, as such, has kept the MSME export sector on tenterhooks as they are worried about net realizations falling into a negative zone as they work on leaner margins in the present times.

FIEO Chief elaborated that large current account surpluses and low inflation rates retained the supremacy of the dollar. But the present volatility of a domestic currency vs. dollar is difficult not only for India (since exports are on the downturn) but also for economies of both Japan and Europe which are also dependent on exports.

The American currency on the other hand would prefer to be “weak" given the current situation. [The American treasury sold $1.4 trillion in fiscal 2009 ended Sept 30th to finance its budget deficit]. There is, however a shift in dollar as a “reserve currency" globally and it is 37% of the new reserves down from an average of 63% since 1999.

Mr Shaktivel opined that while the large exporters manage to hedge (which also comes at a cost) smaller exporters have to make do with a mark-up on their export pricing. The only possibility could be cheaper dollar loans as against LIBOR +3.5% (or more practically) in the given circumstances.

Federation of Indian Export Organisations


Must ReadView All

Pic: Shutterstock

Textiles | On 24th Aug 2019

US firms told to leave PRC after tariff hike announcement

China on August 23 announced tariff hikes on $75 billion worth US...

Finance minister Nirmala Sitharaman addressing a press conference. Pic: PIB

Textiles | On 24th Aug 2019

Pending GST refunds for MSMEs within 30 days: Indian FM

All pending goods and services tax (GST) refunds that are due to...

Pic: Shutterstock

Retail | On 24th Aug 2019

Amazon to acquire 49% stake in India’s Future Coupons

US e-commerce company Amazon has agreed to make an equity investment...

Interviews View All

Kamlesh Vaghela, RK Textiles

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Sunil Rathore, Lacoste India

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Anshul Sood, Oceedee

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Simon Daplyn,

Simon Daplyn

Switzerland-based Sensient Imaging Technologies is a pioneer with a global ...

Arup Chakraborty,

Arup Chakraborty

Mirrorsize is a US-based start-up that provides artificial intelligence...

Shyam Gupta & Ravi Gupta,

Shyam Gupta & Ravi Gupta

Based out of South Delhi, Gargee Designer's provides bespoke formal and...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Ashok Desai, Bombay Textile Research Association

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Lynda Kelly, Suominen Corporation

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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


August 2019

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

news category


Related Categories:

Advanced Search