TN: Textile firm concerns over rupee appreciation

Chennai, Jun 6: The Textile industry in Tamil Nadu has expressed concern over the appreciation of rupee, especially during the last three or four months.

The appreciation of rupee had drastically hit the textile exports during the past few months, Textile Export Promotion Council sources here said.

According to an estimate, for every one per cent of the rupee appreciation, 1.2 per cent of the profitability of the units was affected. During the last one year, rupee appreciated by 10 per cent.

The value of textile exports from the country from January to March had come down.

While smaller exporters were unable to hedge, for several contracts signed in February or March, it was not possible to re-negotiate the contracts, the sources said adding the rupee appreciation had put a severe strain on the industry.

The sector had other problems too that increased the cost of production such as levying of duties and taxes, the sources added.

UNI