Falling rupee to cost Haj pilgrims dearly

HYDERABAD: Depreciating rupee is not just a cause for concern for investors. Haj pilgrims, many of whom spend their life savings to make the holy pilgrimage may also have to bear the burden of currency fallout. The cost of pilgrimage coming up in September is set to become dearer by as much as Rs 25,000.
A pilgrim selected through the Qurrah (draw of lots) would be entitled to a subsidy on airfare provided by the government of India.The cost of accommodation, travel to religious sites and stay would have to be borne by the pilgrim. The total cost of pilgrimage for this year has not been fixed yet but officials estimate that it could be around Rs 1.45 lakh as against Rs 1.12 lakh in 2011, given the falling rupee against Saudi riyal. This time 5,764 individuals were selected from over 17,000 applicants in the state.
That the government is also apprehensive about increase in costs was clear when Central Haj Committee chief executive officer Shaker Hussain was interacting with the media at the office of AP State Haj Committee (APSHC) on Saturday. Hussain who was in the city to review training program of ‘District Haj Trainers’, spelt out that pilgrims may have to bear an additional burden if the rupee does not gain lost ground.
APSHC officials say that pilgrims have been asked to pay Rs 51,000 as first installment by June 11 while the last date for payment of second and last installment is July 31. Interestingly the second installment will be known only after a bilateral agreement has been signed between Saudi Arabia and India. The installment and the total cost of the pilgrimage will be fixed based on prevailing exchange rates at the time of agreement. The volatility in currency is currently the bugbear of officials and pilgrims, and the agreement would act as a cushion against further depreciation, say officials.
They said that the rate of a Saudi riyal for the pilgrims last year was Rs 12.19 while it is hovering around Rs 14.7 now. Since the Saudi riyal is pegged against the dollar any spike between the dollar and rupee affects the rate of Saudi riyal.
“Though it cannot be said which way the rupee will go it can be presumed that there would be big benefit for pilgrims and government if the rupee gains strength. Even last year the rupee slackened though not to the current extent. But at the time of the agreement the rupee appreciated and the cost per pilgrim had come down by Rs 1000 on estimated costs,” said Abdul Hameed executive officer APSHC.
For the pilgrims however the additional cost is not a deterrent in fulfilling their religious obligations. “This opportunity is God-sent. It is once-in-a-lifetime chance. There will be a financial burden but nobody will miss the opportunity to make the pilgrimage. Finances will be arranged for the trip,” maintained a pilgrim who was selected in the draw.