New Delhi: Global buyers have started putting pressure on Indian exporters to offer discounts of about 15 percent on shipments in the wake of weakening rupee.
The rupee, which has been Asia’s worst-performing currency against the US dollar, fell today for the first time to below the 57 mark against the US dollar at Rs 57.30.
“Buyers are asking for heavy discounts. They are asking to give discounts in the range of 10-15 per cent. Buyers are expecting that rupee depreciation would continue,” Federation
of Indian Export Organisations (FIEO) Director General Ajay Sahai said.
Exporters said that buyers are asking to book new orders after factoring in the projected rupee value.
He said the exporting community is concerned about the continuous weakening of the domestic currency against the US dollar in the wake of global demand slowdown.
“The rupee movement is creating uncertainty. The fast movement is good not for the market and businesses. Exporters are confused that to what extent we can give discounts to buyers,” Engineering Export Promotion Council Director Suranjan Gupta said.
The exporters are finding it difficult to ascertain a fair price of the commodity, Gupta said.
Sahai said the government must take some bold steps to stem the falling rupee.
“This kind of volatility will not help exporters. Government has to look at its reform measures and send the right signal to investors,” he added.
He said that the country needs to attract foreign investment in order to increase the availability of dollar in the system.
RBI has said the sharp depreciation of the rupee was driven by a combination of global as well as domestic factors. However, Finance Secretary R S Gujral had said that the depreciation of the Indian currency will ultimately help exporters in the long run.