Depreciated Rupee and forex shortages: More pressure on importers

Rising inflation, depreciation of the Rupee, shortage of foreign exchange and overall harsh operating environment continue to assail the operations of the FMCG sector.

While food prices have fallen for a fifth consecutive month, the depreciation of the Rupee against the US dollar is causing an increasingly unbearable pressure on importers and, consequently, retail prices.

A large importer said that the total cost of importing has jumped around 40% since 2019. “The depreciation of the Rupee has led to an increase in prices by 30%.”

L’Express said shipping companies are refusing to be paid in Rupees.

Importers also blasted banks for holding back forex, especially the USD. “We are getting dollars in installments.”