SME Times News Bureau | 29 Sep, 2021
In yet another measure to facilitate small and medium
exporters, government is looking to get them competitive exchange rates
from banks.
Exporters have to deal with exchange rate variations
for dealing in foreign currencies and its conversion into rupee.
However, while large exporters get forex access at lower exchange rate
from banks, smaller ones make payments at higher exchange rate thereby
losing competitive advantage on their products and services.
Sources
said that the Commerce Ministry has approached the State Bank of India
and Indian Banks' Association to remove this anomaly so that all
exporters get similar treatment on exchange rate or differential is
reduced to the minimum based on risk assessment of banks.
A plan
on fair rate has been sought by the ministry so that exporters are put
to least disadvantage on their forex earnings. It has asked banks to
revise this fair rate and implemented it in a uniform manner across the
country among all banks.
The move for bringing uniformity in
exchange rate also follows complaint of exporters about shipping lines
quoting higher exchange rates. This issue is being dealt separately by
the Commerce Ministry that had asked Director General of Foreign Trade
(DGFT) to take up the issue with the Shipping Ministry. Here as well,
proposal is to have uniform rates for all using shipping line and paying
in foreign exchange.
