At a time when Kashmir business community is grappling with September floods, the fall in value of Euro (currency of European countries) against Indian rupee has brought about tremendous pressure on its export sector.
The Kashmiri exporters exporting handicraft and other items to European market are incurring losses due to abrupt fall in value of euro.
In the beginning of 2014 value of 1 euro was Rs 86.40 which has now come down to Rs 69.40. It suggests an exporter who would get 1,000 Euros at the beginning of 2014 would fetch Rs 86,420 and the same exporter would get only Rs 69,400 presently incurring a loss of Rs 17,000.
President, Kashmir Chamber of Commerce and Industry (KCCI), Sheikh Ashiq said: “The fall in the Euro value has badly affected our exports.”
Ashiq talking to Greater Kashmir over phone from Germany said: “The fall in the value of Euro has put the Kashmiri exporters in a fix. Neither can they get reasonable sums to their export nor can they increase the price of their products because by doing that they will lose the competitiveness on the international market.”
Ashiq who is currently attending Domtex trade fair in Hannover Germany said: “Kashmir’s exporters in the trade fair are also facing brunt of fall in euro value which is affecting their business opportunities.” Domtex is world’s flagship trade fair for carpets and floor coverings.
Experts opine with considerable share of Kashmir handicraft items finding its way in the European markets; the fall in euro will definitely have serious repercussions for the entire export segment in the state.
To mention, Kashmir’s handicraft export was to the tune of Rs 1700 crore in 2013-14.
The Eurozone is a big trade partner for India and a fifth of India’s exports find way to the Eurozone region and a sixth of India’s imports come from this region.