Wednesday October 10 2007 01:10 IST
HYDERABAD: Exporters from Andhra Pradesh are in despair following the appreciation of the rupee against the US dollar.
The value of the dollar had its impact on the merchandise exports, largely in tobacco and software sectors and engineering products, in the State.
The engineering exports from Andhra Pradesh touched Rs 3,256 crore during 2006- 07 but they are expected to come down by 25 per cent by March 2008. China, which is the main competitor to India in engineering exports, will benefit due to the development.
‘‘Chinese exporters are insulated from foreign exchange fluctuations and get the fixed local currency from their government whereas there is no such provision for the Indian exporters,’’ Engineering Export Promotion Council national vice-chairman Mahesh Desai told this website's newspaper.
Under the given circumstances, the Centre’s target of earning $165 billion through exports during the current financial year may not be possible.
The two dozen tobacco exporters from Andhra Pradesh are worried that the fall in dollar value would hit their exports considerably. As against exports valued at Rs 1,500 crore during 2006-07, it is expected to be around Rs 1,300 crore. Tobacco is cultivated in Khammam, Guntur, Prakasam and West Godavari districts and the target fixed is 150 million kg for this year.
‘‘We have entered into agreements with buyers in Brazil and some European countries in terms of the US dollar and it will have its impact on our business this year,’’ M Uma Maheswara Rao, one of the leading tobacco exporters in Guntur district, told this website's newspaper.
The exporters, who purchased tobacco at the rate of Rs 50-52 per kg in Andhra Pradesh and Rs 65 per kg in Karnataka, are keeping their fingers crossed as reports of the rupee appreciating further, up to Rs 37 in the next few weeks, has been doing rounds in the global markets.
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