Rupee volatility, a blow to seafood exporters

The rupee had gained 6.89% between September 4 and 11 from 67.73 per dollar to 63.37 per dollar

The volatility in the value of rupee against dollar has hit the seafood exporters hard. With the rupee firming against the dollar, the sea food exporters in the state are losing to the tune of Rs 100 per kilogram of shrimp exports.

“As the negotiations are made on dollars irrespective of the exchange rates, the appreciation in rupee by about 7.35 per cent recently has hit the exporters badly,” said Gorachand Mohanty, president, The Sea Food Exporters Association of India (SEAI), Odisha region.

The rupee had gained 6.89 per cent between September 4 and 11 from 67.73 per dollar to 63.37 per dollar.

Mohanty said, the exporters are bearing a loss of about Rs 50 per kilogram due to strengthening of rupee and Rs 50 in the purchase price of the shrimps.

“We are unable to confirm the orders at the offered prices as the rupees was hovering around Rs 68 against the dollar when the offer was made,” added the regional president.

Skyrocketing of prices of raw materials due to the short supply have added to the woes of exporters.

“We have reduced purchase of shrimps and are waiting for the market to stabilise. The volatility of rupee is bad for any business,” said Prava Ranjan Patnaik, managing director, Falcon Marine Exports Limited.

The exporters are hit hard as the ensuing Christmas season is a busy period for them, Mohanty added.

With Christmas and New Year approaching, October and November months are usually busy months for the Indian exporters with orders piling up, consignments getting ready and containers taking off to Europe and the US.

If the rupee starts appreciating, it will have adverse impact on the sector, Taj Mohammed, president, SEAI, West Bengal, said.

After touching an intra-day high of 62.92 per dollar, the Indian currency fell to 63.9625 against the US currency on Thursday, before ending the day at 63.54 per dollar, down 0.27 per cent from the previous close of 63.36 per dollar.