Tirupur, Tamil Nadu, Dec 3 (UNI) Appreciating Rupee has struck a pall of gloom in this textile town as the garment exporters started cutting jobs to arrest the declining profit margin.
Talking to visiting newspersons from Bangalore here recently, Federation of Indian Exporters Organisation (FIEO) Vice President A Shakthivel said already 10,000 workers had lost jobs and by March 2008 the number would soar to 50,000 if the Centre did not take immediate action.
''The situation has worsened during the last few months after the rupee value against the dollar continued to fall due to decline in the US economy, and we were left with no option but cut manpower, since the profit margin is going down,'' he said.
At least 65 per cent of the about 300,000 workforce, both skilled and unskilled, were from Bihar, Orissa and Uttar Pradesh.
''Exporters are declining orders from the US,'' he added.
Consequently, this fiscal would see a sharp decline in the textile exports and touch Rs 9,500 crore as against Rs 11,200 crore last year he said.