Textile exports miss target on Re rise

The rising rupee has pulled down textile exports, which have fallen short of the first quarter target by 36 per cent to $4.8 billion. The government had set the target of $7.5 billion for the first quarter ended June 30.

"Textiles exports in the first quarter of 2007-08 have fallen short of the target of $7.5 billion by 36 per cent due to the appreciating rupee," Textiles Minister Shankersinh Vaghela told reporters on Tuesday.

However, the textiles ministry is confident that the export target of $25 billion set for the current financial year will be met as the bulk of orders come during the last two quarters.

A senior ministry official said that a similar trend was witnessed in 2006-07, where nearly 59 per cent of orders came in the last two quarters.  The package announced by the government earlier this month would also aid exporters, the minister said.

He said the package, which is effective from April, would help exporters overcome the problems posed by the strengthening rupee, which has appreciated by more than 11 per cent since August last year.

Vaghela said the textiles ministry would also push for increasing the duty drawback rates further, expedite the refund of terminal excise duty and make the foreign currency account of exporters interest bearing.

The package, which includes greater interest subsidy on pre- and post-shipment credit, has been welcomed by the textile industry, which feels that it should be extended beyond December.

Vaghela also admitted that due to the rupee appreciation some units had been forced to close down.