JAIPUR: While most markets are on a high, with businessmen laughing all the way to the banks, its exporters who are facing torrid times as dollar continues to fall. Not only the payment valuation but also fresh orders are being affected and textile exporters in Bhilwara are unsure as to when will this dilemma end.
Ever since the beginning of this financial year, over Rs 2,000 crore annual export market of the textile city is being affected. “We can’t plan a long time strategy owing to this condition. Earlier, the valuation of dollar won’t change beyond 20-24 paisa in a couple of months, but off late it’s been fluctuating between extremes and in turn jeopardizing our strategies,” says Sudeep Galundia, managing director, Galundia Textiles.
In the last few days the dollar took a dip and was at Rs 46.009 on Thursday, a dip of almost Rs 2.5 in the past one week. This has an adverse impact on business as exporters get paid less for the amount for which they booked the order. “The price has taken a major fall and at one stage went below the Rs 46 that we anticipated, but thankfully over 75% payments of orders post Eid have been realized, but still there is a loss,” says Prem Garg, secretary, Bhilwara Textile Trade Federation. Experts feel that in the past six months has so far resulted in close to 30% sales loss while the actual business has receded by 15%. Though the banks provide for covering these risks by taking forward bookings for a stipulated time period, but if that lapses then the exporters have to pay the banks the deficit, despite getting less amount for their supplies.
“These rates also have a bearing on the orders we place with the overseas clients. With unstable dollar prices the exporters quote different prices for similar grade of material and this confuses the buyer who in most cases opt to buy from a different supplier,” says Ashok Kher Rajani, managing director, Deekay Crexion.
All this has an adverse effect on the functioning of close to 69 spinning mills in the district, which comprise of spinning, weaving, dyeing, processing and printing units. Majority of these industries are affianced in the process of manufacturing synthetic blended yarn which accounts to 40% of the total yarn manufactured all over India.
Europe, Poland, Turkey, Sri Lanka and Bangladesh constitute the major exporters of yarn, whereas bulk fabric is exported to Middle East, Latin America and Africa.
“As of now its time to export goods to Latin America and with the prices being unstable there is a huge difference in the prices quoted by exporters. Those in the organized sector are opting for a safe price keeping in mind the forward bookings, but the unorganized sectors which comprises primarily of those who play on speculation are taking the risk of quoting a different price,” says Galundia.
Exporters in organized sector take this loss in their stride and see no respite in sight for the coming few months and expect things will return to normal by next year. “At times we do stand to gain when the dollar is going strong, but this has been a long uncertain run. We hope it ends soon, “concludes Garg.
Source : TOI