New Delhi, Jul 29 (KNN)  Exporters’ body FIEO today allayed reported concerns that the exporters are mispricing goods to stash dollars overseas to benefit from the depreciating rupee.

“Most of the shipments are under some export neutralisation or promotional scheme and there is a system to assess the value; these have to go through customs for valuation. So, how is it possible to declare higher or lower price,” said Director General and CEO, Federation of Indian Export Organizations (FIEO), Ajay Sahai, responding to reports in the media that the exporters may be under-invoicing shipments.

However, there might be some exceptional cases of exporters under-invoicing to park dollars overseas while importers are over-invoicing goods to send dollars out. “But majority of them don’t do this. Ninety five per cent of the shipments are scrutinized by the customs,” he added.

India's exports dropped 1.4 per cent in the April-June quarter while its non-oil imports rose 5.8 per cent in the same period, yielding a trade deficit of USD 50.2 billion, which is 19 per cent more than last year.

Exports were down 4.6 per cent in June. The rupee has slid nearly 10 per cent against the dollar over this period.

“Rupee depreciation has definitely added competitiveness to the exports but we could not en-cash on it due to slackness in global demand. Moreover, many currencies have also depreciated against dollar giving lesser advantage to Indian rupee. Coupled with it is the fact that import intensity of exports have increased in the last 10 years or so which is taking a hit with depreciation of rupee,” said Sahai.

The value of domestic inputs has also increased due to inflation and therefore, the net competitiveness has not increased to the extent everyone thinks, he added.  
However, the global situation is improving and we are hopeful that exports will post better results in the months to come, said Sahai.  (KNN/SD)