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May 15, 2007

Strengthening Rupee weakens Tirupur ..

EXPORT enquiries in the textile trade have almost come to a standstill. A Tirupur Exporters’ Association (TEA) spokesperson said that the units in Coimbatore are posting a Rs 2-crore loss per day due to the strengthening of the rupee against the dollar. “The present rupee rate has adversely affected Tirupur exporters. We fear the importers will move to China for low prices in a short period".

Export enquiries for cotton too are badly hit. India is expected to achieve the projected cotton output of 270 lakh bales this year (October 2006 - September 2007) and already over 240 lakh bales have arrived. Production is likely to surpass the target. But, owing to the lower demand on the export front, there has been a reduction in prices. According to the data available with the South India Cotton Association (SICA), prices of the Shankar 6 variety that was selling up to Rs 20,000 a candy have dipped by nearly Rs 1,600 - 1,700 a candy now.

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