Due to rupee appreciation, textile exports for the first quarter of the current fiscal were valued at $4.8 billion, falling short of the target set by the government. "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," textile minister Shankersin Vughela told reporters today.However, the textile ministry is confident that the export target of $25 billion set for the current fiscal would be met as the bulk of orders come during the last two quarters of the fiscal. A senior textiles ministry official said 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 the exporters, Vaghela said, adding that the package, which is effective from April, would help exporters to overcome problems posed by a strengthening rupee, which has appreciated by more than 11 per cent since August last year.Vaghela said the textile ministry will also push for increasing duty drawback rates further, expedite the refund of terminal excise duty and make the foreign currency account of exporters interest bearing.The package that includes greater interest subsidy on pre and post shipment credit has been welcomed by the textile industry that feels it should be extended beyond December.Vaghela also admitted that due to rupee appreciation some units have been forced to close down.
