According to some textile exporters, the falling rupee has given them a chance to match the price-cut resorted to by their south-east Asian competitors like Indonesia, Malaysia, South Korea etc.

The south-east Asian crisis had forced these countries to undercut prices of textile items in overseas markets making it difficult for Indian exporters to match this. Now with the dollar fetching more rupees, they can afford to lower their prices for export goods. "We cannot cut prices for the garments being shipped out right now and for which prices had been contracted 2-3 months ago. But for our new orders, we have begun to quote lower - to the extent of depreciation at least" says Madan Jain, chairman of All India Garments Exporters and Manufacturers' Association.

However, there is a catch. There is a likelihood that the rupee slide would not only halt soon, but could get into reverse gear as aresult of various measures being taken to stop the fall. If the rupee appreciates once again, the lowered price tag in terms of dollar could prove to be unremunerative. "But that is a business risk one has to take" says Jain.

However, others beg to differ and say that a strong dollar would spell higher export revenue for them. "Depreciation of rupee does not exactly help (exporters) since the textile yarn market abroad is very bad and there is a cut-throat competition and everyone is a keen seller having a dampening effect on the prices" opines RK Patodia, managing director of Yarn Syndicate Ltd.

According to A Rajendramani of Premier Enterprises, a small-scale unit which manufactures and exports 100 per cent cotton grey gauze cloth and cotton grey fabrics, there is nothing much to gain from the lower rupee value. The buyers abroad are aware of such heavy depreciation of Indian currency and bargain hard for lower prices in dollar terms.

Importers seem to be acting up on rumours that the Indiangovernment wants the dollar to be at Rs 45 level to show high export earnings in rupee terms. Thus, importers are trying to factor Rs 45 for a dollar in their future quotations. "It is only quota countries which are asking for the cut," says Milind Hardikar of Arvind Mills. Non-quota countries especially south-east Asian countries which are themselves reeling under the affects of depreciation of their own national currencies are not bargaining for any cuts.