Kolkata: An IIFT functionary said that exporters will be hurt with the continuing rupee appreciation as against the USD dollar as they could soak up the exchange shock only upto Rs 42 per dollar.

Indian Institute of Foreign Trade director K T Chacko, said, “To our understanding exporters can absorb exchange shock upto Rs 42 for a dollar while now has breached the Rs 40 mark.”

"The exporters are shocked as the rupee appreciation is extremely sharp," he also said.

Chacko said, “In a study by IIFT, it was found export value contained a burden of four per cent indirect taxes of the FOB which exporters did not get refund.”

"Non-refund of certain indirect taxes on export to which they are entitled makes Indian exporters more un-competitive," he said.

"However, I have learnt that the Commerce ministry has recommended to the Finance ministry for refund of four per cent of the value of exports to mitigate the indirect taxes which is not refunded to exporters," Chacko said.

The major indirect taxation not repaid included CST on intermediaries, sales tax on petro products, taxes on inter-state movement of goods and tariff on electricity.