Falling dollar adding to carpet industry woes

Bhadohi, May 7 (UNI) The rising rupee value vis-a-vis dollar is posing a new challenge to the carpet exporters in the 'carpet belt' of Bhadohi.

Already reeling under dismal trade conditions in the last decade, the carpet industry is now faced with falling value of dollar, which generally determines the value of exports.

The US dollar has already fallen from a peak of Rs 48 to Rs 41 this year. In the last one month, the dollar has registered a fall of almost 13 per cent.

When the export contracts were entered into by carpet exporters, the value of dollar was higher. This has resulted in a major revenue loss to carpet exporters.

Imtiyaaz Ansari, an exporter, said the business would suffer even more in economic terms, if dollars continues to fall in the days ahead.

India exports carpets worth around Rs 2,500 crore annually.

The exporters had already kept their profit margins low to face intense competition from countries like Pakistan and China.

''The falling dollar has only added to our woes,'' he noted.

Market analysts have pegged the loss at Rs 25 to Rs 30 crore per month to carpet industry on this account.

UNI