Rise of rupee against dollar cripples textile exports
The continuous rise of the rupee against the U.S. dollar for the last two months has dealt a blow to knitwear exporters of Tirupur. Caught between the sudden fall of dollar by 10-12 per cent in a short period and the spiralling interest on packing credits, the exporters now feel the heat. Many say they have started losing their competitive edge to exporters of Bangladesh and China.
This comes at a time when their exports crossed the Rs.11,000-crore mark last year. “All our buyers have started looking at competing countries as our prices have gone up by a minimum of 12 per cent. … We are unable to get new orders,” gripes A. Sakthivel, president of the Tirupur Exporters’ Association. Source: TheHindu
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