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G. Gurumurthy

The knitwear exporters' body has suggested that export credit rate be brought down to 4 per cent level on par with the LIBOR rate and offer of export credit guarantee cover for exchange risk.

Coimbatore , Sept. 10

THE Tirupur knitwear exporters say the sliding dollar has caused uncertainty in their exports.

The exporters say the losing dollar-rupee disparity is behind the negative growth rate in their exports.

Informed knitwear industry sources say that the cotton knitwear exports slipped some 5 to 6 per cent during the June-August period due to the appreciating rupee against dollar and euro.

The Tirupur Exporters Association (TEA) has sounded an SoS to the Union Finance Ministry to stem the downward march of the dollar value. The TEA has asked the Finance Ministry to allow exporters to do rupee invoicing as an option. They fear a huge loss in their foreign trade transactions due to erosion in the dollar. The trend, according to the TEA President, Mr A. Sakthivel, would also have a cascading effect on their export account.

Seeking series of support initiatives, the knitwear exporters' body has suggested that export credit rate be brought down to 4 per cent level on par with the LIBOR rate and offer of export credit guarantee cover for exchange risk.

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