Rupee appreciation may hit cotton textile exporters
Published on Sat, Apr 28, 2007 at 11:57 | Source : Moneycontrol.com
Updated at Mon, Apr 30, 2007 at 10:29
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Rupee appreciation may hit cotton textile exporters
On current reckoning, rupee appreciation could cut into the earnings of cotton textiles and apparel exporters. The target set for cotton textile exports for this fiscal is $5 billion.
A recommendation has been made for reimbursing duties and transaction costs to the exporting units. 'This move is imperative for us to be more competitive. We need to export goods and not taxes,' said Mr Malik.
It is also likely that the rupee appreciation will result in a rise in cotton imports.
'The rising rupee has made imports more lucrative and in the long-run hurt growers,' said Mr Malik.
In 2006-07, Indian textile units imported around 7-8 lakh bales of cotton.
A strong rupee is expected to reduce export receipts of apparel exporters by 6.3 per cent from Rs 20,484 crore in the first half of 2006-07 to Rs 19,181 crore in the first half of 2007-08.
Mr Vijay Agarwal, Chairman, Apparel Export Promotion Council, said: 'The currency appreciation loss is usually borne by the exporter, at the cost of reducing profit margins.'
