Coir exporters have lost almost one-tenth of their earnings in the last fiscal due to strengthening of the rupee, Coir Board sources said.
Estimates provided by the state-run Coir Board indicate that India exported 1,87,566 tonne of coir products in fiscal 2007-08 valued at Rs 592.88 crore as against 1,68,754.75 tonne valued at Rs 605.16 crore in 2006-07.
The volume of exports has increased by 10.5%, while value dropped by 2.7%. Board chairman AC Jose said that the export revenue would have been higher at Rs 636 crore had the exchange rate remained unchanged.
?Coir products have a low value unit realisation and the rupee appreciation has brought the coir industry to a standstill. Exporters are shy to despatch consignments due to the thin profit margins,? AC Jose said. Enhancement of PLR rate in respect of packing credit, term loan, pre-shipment/post-shipment credit by banks, unrebated service tax and fringe benefit tax have also hurt the export sector, he added.
Board sources point out that unit realisation for exports has dropped by almost Rs 5,000 per tonne during the period of April-October 2007-08 with rupee gaining over the dollar.
Coir industry being a monopoly industry with 90% of the share of world exports has suffered in spite of increasing exports. The low down in the dollar value continuously have hit any advantage that has been derived by a higher volume growth, sources said.A C Jose urged for immediate remedial measures by the RBI in tandem with the finance ministry so as not to dent export competitiveness.
He pointed out that coir industry which has low unit value realisation and compressed profit margin cannot absorb the appreciation of rupee. ?The rupee appreciation has put severe strain on the coir industry,? he said.