Jodhpur-Jaipur based furniture exporters are breathing easy with rising prices of dollar against rupee. It is noted that the furniture manufacturers of these clusters are mainly dependent on export business, which was reported to slow after implementation of GST, when it was levied at 28 % initially and later came down to 18 %. But the recent strong dollar against rupee by approx 17 % since January is helping the exporters to maintain their business growth. Although furniture manufacturers of Jodhpur cluster say to FDT, that the buyer are asking for discounts on new orders and some of them have on hold the new orders or shifting them to those who can offer the product on less price.
Furniture makers also opine that the prices of glue, surfactants and raw materials have increased considerably high due to strong dollar. Also, the increasing activity for certification of timber has pushed the manufacturers to be dependent on imported wood, but the increasing dollar has put a barrier on their use due to price viability which are putting manufactures in tight situation for timber. “Increasing raw material cost has negatively impacted the industry. After a short gain due to strengthening dollar for two months the negative impact has started appearing as the new increased price quotations are coming in to manufacturers which will affect them in long run. The industry is more dependent on imported raw material. We have observed 10 percent boost in revenue but nearly 17% increased price are coming in to manufacturers. Secondly The rising transportation cost has increased the input cost for furniture manufacturing,” said Mr Bharat Dinesh, President, Jodhpur Handicrafts Exporters’ Association (JHEA).
This year the exporters are witnessing the change and are observing boost in revenue by 10 percent due to strengthening dollar price. But, the export volume is same as they are exporting the same 1500 containers per month. Jaipur and Jodhpur is long known for its designer and hand crafted designs hardwood furniture for exports to different countries specially US and Europe.
The leading hardwood furniture exporters from Jodhpur say that “We were much comfortable if there is a smooth movement in economy, but for last six months dollar is rising continuously which has disturbed our activity. It is apparent that export volume in terms of revenue has increased by 10 % till date but the fresh orders are not coming and importers are asking for discount.” The manufacturers are also in fear that the competitor can offer them at lesser price and existing customers’ base will be disturbed.