Exporters seek government intervention on rupee rise
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New Delhi, Oct 1 - Fearing further appreciation of the rupee to Rs.38 to a dollar by December, Indian exporters Monday asked the government to implement the relief package announced last year and ease the service tax burden on them.'The profitability of exporters has been wiped out and constant appreciation is threatening the competitiveness of our products,' said G.K. Gupta, president of the Federation of Indian Export Organisations (FIEO).'If we lose the market, aggressive competitors are just sitting on the fence to occupy the market,' Gupta warned while interacting with reporters here on the impact of the appreciating rupee on exporters.'The downfall in exports is also affecting industrial production, which has slipped from 13.2 percent in July 2006 to 7.1 percent in July this year,' said Gupta.The FIEO chief lamented that no effect of the appreciation had been taken into account while determining duty drawback rates and that the service tax sops had been confined to a few services, leaving others outside the refund ambit.Gupta wanted the prime lending rate to be cut by 100-125 basis points so that the interest burden is reduced and exporters gain competitiveness.Industry should also explore the possibility of invoicing in other currencies, or in rupee, and use hedging options to safeguard against losses, Gupta added. (c) Indo-Asian News Service
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