The fall is a sizeable one, as Gujarat accounts for 80 percent of the nation’s production, also contributes to 65 percent of the country’s overall earnings from this product…Now, the exporters are incapable of selling their goods in the export markets at the preset prices, which has in turn forced the buyers to maintain a distance. ..Volatility in exchange rates is also considered as one of the reasons that is keeping exporters at bay, thereby, avoiding any long-term commitments with overseas purchasers. Adding on to this is the crisis in Europe, which has further strengthened the rupee…Volatility in foreign exchange, for small and medium firms is a matter of concern, as it has always been an unpredictable area. In addition, the European crisis has also placed the European buyers in a fix, as prior to the crisis it was simpler for them to get credit from the market…Not only this, of the three major players in Gujarat, just two of them have succeeded in maintaining export growth. Experts are of the opinion that, as US and European countries are the only main buyers in the Rs 500 billion worth dyestuff industry of India, exporters are left with no choice but to continue trading with these countries…Therefore, excepting for the major players, others will have to wait till the situation improves.
Date:5/24/2010
Source:Fibre2fashion