Knitwear exporters seeks RBI intervention to limit rupee gain
Updated: May 21, 2014 10:52:40am
Chennai, May 21 (KNN) Tirupur Exporters' Association (TEA) has appealed to the Reserve Bank of India to intervene and contain rupee gain in the best interests of the country's exports which provide employment to millions of people while contributing considerably to the Indian economy.
The Rupee has been gaining against the Dollar and this situation would affect the exporting units of Tirupur since they would not be competitive enough in the global market, said President, TEA, A Sakthivel in a letter to the RBI on Monday.
TEA has called for immediate intervention to arrest rupee gain.
The association seeks a level playing field to sustain in the global market. Considering that the rupee gained over the last couple of days to touch Rs 58.57 a US dollar, they fear the trend would continue.
Significantly, after a downside in growth for four years, the exporters regained growth last year. Further, in the face of fierce competition from China and benefits that Bangladesh being a less developed country receives in terms of customs tariffs in the European market, the industry fears that appreciation of the rupee against the dollar could derail the growth which the sector recorded just last year.
Exports from TEA in the fiscal ended March-31 amounted to Rs 17,817.08 crore, compared to Rs 13,709.83 crore in the FY13 fiscal, which is a growth of 30 per cent in rupee terms and 15 per cent in dollar terms, a media report said.
Established in 1990, TEA is an association exclusively for exporters of cotton knitwear who have production facilities in Tirupur. The strong body of knitwear exporters has over nine hundred members. (KNN/ES)
The Rupee has been gaining against the Dollar and this situation would affect the exporting units of Tirupur since they would not be competitive enough in the global market, said President, TEA, A Sakthivel in a letter to the RBI on Monday.
TEA has called for immediate intervention to arrest rupee gain.
The association seeks a level playing field to sustain in the global market. Considering that the rupee gained over the last couple of days to touch Rs 58.57 a US dollar, they fear the trend would continue.
Significantly, after a downside in growth for four years, the exporters regained growth last year. Further, in the face of fierce competition from China and benefits that Bangladesh being a less developed country receives in terms of customs tariffs in the European market, the industry fears that appreciation of the rupee against the dollar could derail the growth which the sector recorded just last year.
Exports from TEA in the fiscal ended March-31 amounted to Rs 17,817.08 crore, compared to Rs 13,709.83 crore in the FY13 fiscal, which is a growth of 30 per cent in rupee terms and 15 per cent in dollar terms, a media report said.
Established in 1990, TEA is an association exclusively for exporters of cotton knitwear who have production facilities in Tirupur. The strong body of knitwear exporters has over nine hundred members. (KNN/ES)
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