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Exporters in the region fail to gain from rising dollar

The rupee deprecation, expected to perk up the fortunes for exporters’, has indeed, left some exporters in the region, cursing their luck.

Exporters in Ludhiana famous for hosiery and cycle business maintained few of the exporters in the region had hedged part of their overseas receivable at 45-46 level and now with rupee breaching 52 level , although gains are there for exporters but not to the extent they ideally would have liked.

Ajit Lakra, President Chamber of Knitwear and Textile Associations of Ludhiana maintained weakening rupee against dollar makes ‘sense’ for exporters , but hedging has taken off some sheen.

“When dollar reached 45-46 level, most exporters fearing downslide in dollar hedged at 45-46 level, only to realise later the rupee breaching 50 level mark .” Lakra added the loss hurts even more when the orders get delayed. “I have incurred loss of Rs 24 lakh.”

The exporters maintain there was a double whammy for hedgers, while part of their profits is already taken by hedging, the overseas buyers realising advantageous position of exporters in India are forcing them to re-negotiate the prices.

S C Rehlan , regional chairman, Engineering Export promotion Council (EEPC) maintained exporters are not able to take full advantage with weakening rupee.

Part of this has been because of the various factors leading to rise in input costs and partly because of other reasons like hedging.

Earlier in 2008 also the exporters in Ludhiana suffered losses on account of derivative products mis-selling allegedly by banks and again this year because of hedging the story is repeating.

Pradeep Tayal consultant to exporters in Panipat maintained exporters in Haryana also are losing. Losses are being accrued by the exporters for now.