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    COIMBATORE: It has been a duble blow for garment exporters. With the dollar and the euro on a steady downward spiral in the last three months, garment exports are scurrying for cover. The decline has put the nascent recovery in the $10 billion -ayear apparel exports industry in trouble.

   “We are asking better rates for new contracts. But not many (buyers) are listening new (price) negotiations have come to a standstill,” says Rajendra Hinduja, MD, Gokaldas Exports, the country’s largest garment export the country’s largest garment export firm. While large exporters such as Gokaldas have taken forward covers for about 50% of their orders as a hedge against currency volatility , small and medium export houses in Tirupur have covered 15-20% of their orders,

   With the rupee approeciating 2.39% against the dollarand 3.39 against the euro in past three months, the profitability of small and medium export firms, which work 7.8% operating margins,has taken a hit, A5% rise is the dollar would knock  3% off a firm’s bottomline says Hinduja.