Rupee fall making imports via Attari-Wagah unviable: Traders.

CHANDIGARH: Imports from Pakistan through Attari-Wagah land route has become "unviable" as the rupee's value against dollar has sharply fallen, traders in Amritsar have said.

"Depreciation of rupee against the dollar has started to pinch us hard as our 1.5-2 per cent margins on import have squeezed because of it," Amritsar-based importer Anil Mehra told PTI today.

Financial transactions between traders of Pakistan and India at Attari-Wagah route are carried out in US dollar.

The rupee today plunged below the psychological 55-level to close at all-time low of 55.03 against the dollar amid robust demand for the US currency from banks and importers. This could mean that Indian traders have to dole out more rupees for their imports.

Mehra, who imports dry dates from Pakistan, has stopped fresh import of the commodity from the neighbouring country due to the sharp rise in dollar's value against the rupee. "Only those truck loads are coming which are contracted at earlier rates," he added.

Traders said major impact of depreciation in rupee's value will be visible on imports of cement and gypsum.

"Import of cement and gypsum at current dollar rate has become unviable for an importer and importer will now have to revise contracts with customers at the earliest, otherwise he will face huge losses on import," another trader Rajdeep Uppal said.

Bulk of import from Pakistan now constitutes cement and gypsum rock as about 100 trucks loads cross over to Indian territory per day.

With the balance of trade in India's favour, the import from Pakistan through land route stood at Rs 965 crore in 2011-12 against Rs 453 crore in previous fiscal.

The traders also demanded that the Reserve Bank of India should take appropriate steps to prevent further weakening of the domestic unit against the American currency.

Source : economictimes.indiatimes.com