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G. Gurumurthy

Coimbatore , July 13

KNITWEAR exporters from Tirupur are concerned over volatile fluctuation in rupee-dollar exchange rate seen in recent times and its adverse impact on their exports.

The knitwear exporters maintain that the wild fluctuation in the rupee-dollar parity has left a cascading effect on the pricing of Indian products. They fear that the currency convulsions occurring in series will trigger the decrease in the quoted rates for exports severely affecting the competitive pricing.

"Our contract in export trade fixed at a particular rate will be valid for a year and the foreign buyers would not change the contracts in the mid-way. In this background, the continuous slide of dollar vis-a vis the rupee in the last one year is ringing alarm," said Mr A Sakthivel, President of the Tirupur Exporters' Association.

In a memorandum addressed to the Union Finance Minister, Mr Jaswant Singh, and the Commerce Minister, Mr Arun Jaitley, Mr Sakthivel has noted that on the contrary, the quinquennial cushion to protect their currency parity by China, a major competitor to India in the global textile market, had enabled it to have more or less stable parity rate to their currency.

The TEA president has asked the Finance Ministry to work out some mechanism to impart exchange rate protection so that vagaries of currency fluctuation do not throw export pricing haywire.

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