Falling rupee to give short term benefit to bicycle exporters in India
Updated: Aug 26, 2013 04:53:04pm
New Delhi, Aug 26 (KNN) Bicycle exporters to get short term benefit due to depreciating rupee value because in the long term, production cost will increase owing to high cost of raw material.
“Presently, the cycle exporters are flourishing due to falling rupee value, but in the long run it is not good for the industry,” said United Cycle and Parts Manufacturers Association President, Gurmeet Singh Kular.
Due to high dollar value, the copper and other metal costs are going up, so in the long run our cost of production will increase, Kular added.
The customers from the Middle East, where we mainly export, are asking for discounts due to high dollar value, he said.
India mainly exports bicycles to the Middle East countries. About 95 per cent of the demand from across the world is for high end bicycles, which are not manufactured in India.
While India exports around Rs 150 crore worth of bicycles, bicycle spare parts and bicycle accessories; it also imports around Rs 1500 crore worth of bicycle and bicycle parts per year. The demand for the imported high end bikes is very high as they are not manufactured in India.
Imported bicycles are likely to get costlier by 15-18 per cent soon with importers deciding to hike prices of bicycles, including of high-end ones in the backdrop of the depreciating rupee against the dollar.
“The imported bicycles will get 15 – 18 per cent more costly due to falling value of rupee against dollar. The import duty itself is 30 per cent for the bicycles,” said United Cycle and Parts Manufacturers Association President.
Kular also demanded a technology hub for bicycles to upgrade the sector as in the textile sector to make it more competitive globally.
Most bicycle components, spares and bicycle accessories in India, except for free wheels and single piece bicycle hubs, are manufactured by the small and medium enterprises in India, while the larger enterprises mainly manufacture bicycle frames, chains and rims for captive consumption. (KNN/SD)
“Presently, the cycle exporters are flourishing due to falling rupee value, but in the long run it is not good for the industry,” said United Cycle and Parts Manufacturers Association President, Gurmeet Singh Kular.
Due to high dollar value, the copper and other metal costs are going up, so in the long run our cost of production will increase, Kular added.
The customers from the Middle East, where we mainly export, are asking for discounts due to high dollar value, he said.
India mainly exports bicycles to the Middle East countries. About 95 per cent of the demand from across the world is for high end bicycles, which are not manufactured in India.
While India exports around Rs 150 crore worth of bicycles, bicycle spare parts and bicycle accessories; it also imports around Rs 1500 crore worth of bicycle and bicycle parts per year. The demand for the imported high end bikes is very high as they are not manufactured in India.
Imported bicycles are likely to get costlier by 15-18 per cent soon with importers deciding to hike prices of bicycles, including of high-end ones in the backdrop of the depreciating rupee against the dollar.
“The imported bicycles will get 15 – 18 per cent more costly due to falling value of rupee against dollar. The import duty itself is 30 per cent for the bicycles,” said United Cycle and Parts Manufacturers Association President.
Kular also demanded a technology hub for bicycles to upgrade the sector as in the textile sector to make it more competitive globally.
Most bicycle components, spares and bicycle accessories in India, except for free wheels and single piece bicycle hubs, are manufactured by the small and medium enterprises in India, while the larger enterprises mainly manufacture bicycle frames, chains and rims for captive consumption. (KNN/SD)
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