Small exporters hard hit by the dollar depreciation

New Delhi, Apr 19 (UNI) Small and medium exporters has sought early intervention of the Central Bank to prevent Indian exports from taking a hit by virtue of the ever rising rupee, which spares none but is more damaging to the small producer.

They have sought a largest slice of the concessional export credit and asked Reserve Bank of India (RBI) to issue a directive to the commercial banks.

Delhi Exporters Association (DEA) President S P Agarwal raised the alarm bells saying that if corrective steps are not taken many small exporters would have to shut down shops.

''About 10,000 small exporters would go out of business if the Central Bank does not take any initiative to raise the value of dollars,'' he added.

Exporters have booked their export orders keeping in mind Rs 45 or 46 to a dollar but this low value of Rs 41.45 against dollar had not only shrinked their profits but exporters would be in a loss to fulfil their export commitments, Mr Agarwal said.

The problems of the exporters is due to the fact that most of India's external trade is invoiced in dollars and any change in the dollar's rupee value has a disproportionate effect on the various stakeholders in the rupee's external value.

The sectors which are worst hit because of rupee appreciation include handicrafts, textiles, redymade garments, leather goods and engineering items.

UNI