FM Rules Out More Sops For Exporters

Finance Minister P Chidambaram has ruled out any more sops for the exporters hit hard by the rising rupee asking them to get used to stronger currency as dollar inflows would continue to grow. The government had announced Rs 1,400 crore package in July for exporters. We have taken note of the short-term pain of exporters and we have given them a package. But we hope that they will quickly adjust to the new level of rupee, Chidambaram said.

Exporters are demanding more sops to deal with rupee appreciation against the US dollar, complaining that their realisations have gone down due to the rupee effect and the prices they are quoting for new orders are turning away customers. The rupee has appreciated around nine per cent since March. From the lows of over Rs 45 in October-November last year, it is now ruling slightly above Rs 40. Commerce and Industry Minister Kamal Nath also supported the exporters yesterday stating that the government was thinking of a new package for exporters. The appreciating rupee has impacted exports and we are seized of the matter, he said.The Finance Minister, however, said there could not be a situation where the economy grows but rupee remain weak and exporters should take this into account while booking new orders.