Falling rupee hits Indian exporters

Falling rupee hits Indian exporters

They offer discounts under pressure

Not wanting to “sour” their trade relations with buyers by getting into any argument amid a weak global economic sentiment, most Punjab exporters working in different industry verticals — including garments, sports goods and light engineering items — have begun to accept the “wishes” of importers.

The rupee, which has been Asia’s worst-performing currency against greenback, has fallen by a whopping 15 per cent since July this year and is presently hovering above Rs 51 a dollar.

“The excitement of the depreciating rupee against the dollar is short-lived, because buyers have started pressurising us to offer the maximum discount on export of products in view of dollar appreciation, which will yield more realisation in rupee terms,” Wool and Woollen Export Promotion Council Chairman Ashok Jaidka told PTI today.

Exporters said buyers are projecting that the rupee will soon depreciate to Rs 54 per US dollar and have asked for a discount ranging between 20-25 per cent for booking new orders after factoring in the projected rupee value.

“But after hard bargaining, they finally settle at an 8-10 per cent discount,” he said. Exporters pointed out buyers are going even to the extent of finding faults with products and have cited the poor economic scenario in their countries to get the maximum price reduction.