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Strong rupee hits wood-based industries
Staff Reporter
KANNUR: Wood-based industries in the region are concerned about the adverse impact of the depreciation of foreign currencies, especially dollar, against rupee on their export earnings.
Western India Plywoods Limited (WIPL) here, a major wood-based industrial unit, expressed concern about the detrimental effect of the depreciation of the dollar from March 1.
Sales contracts
WIPL executive director P.K. Mayan Mohamed said here on Wednesday that the company signed sales contracts with various buyers all over the world to supply quite a large quantity of hardboard, densified laminated wood and lacquered hardboards to the tune of over Rs.3 crore.
The contracts were signed before March 1 when the exchange rate of the dollar to the rupee was Rs.44 and the products had to be supplied within six months, he said.
Mr. Mohamed said the exchange rate of dollar had now reached as low as Rs.40.
This drop in the exchange rate by more than 10 per cent had badly affected the company, he said.
He added that the company was in a quandary as any increase in price was not possible due to the very stiff competition in the international market.
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