Importers stuck as deals go haywire after sudden and sharp fall in rupee

Metal traders face double whammy of high global prices and a low rupee, leading to a multiple cost-push effect

The sharp fall in the rupee against the dollar in the past few weeks, along with the rebound in metal and crude oil prices, has spoiled the trade game of many importers who now face huge losses. Several small- and medium-sized units depend on imported metals, scrap, polymers (raw materials for plastic), petrochemicals (synthetic textiles raw materials and other chemicals, solvents), which have seen a spurt in import prices due to rising crude oil prices and a falling rupee.

During the past six weeks, the rupee has fallen more than five per cent, while crude prices were up 23 per