Re rise hits production in Punjab

Manufacturing activity in Punjab is suffering badly. Several exporters, instead of supplying Indian goods to other countries, are importing goods from countries like China and exporting them directly from there to counter the effect of the weakened dollar.

Industrial sources say there is 'no real rise' in exports from India, as a large portion of goods are being imported from China. Import from China provides a two-way benefit"" one pertaining to currency and the other of low cost.

Of the total export from the state, a decline of at least 15-20 per cent has been seen in past nine to ten months. Amongst the worse hit are textile and cycle spares industries. In the past 10 months, appreciation of rupee has resulted in decline of exports from the state.

Be it hosiery, fastener, auto spares, hand tools or cycle spares manufacturers, the impact has percolated to one and all. Experts warn that if the situation remains volatile for some more time, it may cause massive unemployment.

After an Indian buyer purchases in China and procures bill of lading, the shipment is directly sent from China to other countries. However, as the payment from export is received in India, it is counted as export from here, explains an exporter.

Exporters are unhappy with the government for not taking enough measures to control the situation.

"China is our biggest competitor. However, Chinese government does not let currency rise by more than 3 per cent but the Indian government does not appear to be concerned about exporters. Exports have suffered for the past 10 months and no concrete measures have been taken in this direction," says S C Ralhan, regional chairman, Engineering Export Promotion Council (EEPC).

"That exports are rising is totally false. Exporters are engaged in third-country export "" the product never comes to India. It is Chinese goods that people are importing and exporting to other countries. Supply of goods manufactured in India to other countries has become counter-productive as dollar is weakening and decline of even a single paisa is hitting exporters hard. They are no longer equipped to bear the losses further," says a representative of a leading industry association.

Exporters say as deals are fixed in dollars, continual fluctuations in currency translate into losses as they get fewer rupees for their supplies.

"We are already facing trouble due to rise in the prices of raw material and in-ocean freights. Weakening of dollar has made it near impossible for exporters to earn profits," says a textile exporter.