Exporters worried over rising freight rates and shortage of containers

Mumbai, Ta. 27 October 2020, Tuesday

Exporters have expressed concern over the hike in freight rates and shortage of containers, claiming that it would affect exports, prompting exporters to approach the Commerce Ministry to intervene.

In a recent meeting with Commerce and Industry Minister Piyush Goyal, the exporters raised a number of other issues. The discussion was attended by appointees of various Export Promotion Councils.

President of the Federation of Indian Export Organizations (FEO) S. That. Sharaf said the freight rate has increased by 20 to 30 per cent depending on the export centers. The farmers' movement in Punjab has affected the movement of containers which are used for export of goods.

The issues were raised at the meeting with Goyal as they have become major challenges facing exporters, he said in a statement. An estimated 10,000 containers are stuck, disrupting import-export calculations.

Apart from this, issues of faceless assessment were also raised by the Merchandise Exports from India Scheme (MEIS) funds and the customs authorities.

In the September quarter of the current financial year, the country's exports declined by 12.5 per cent year-on-year to ૨૨ 21.2 billion, while imports declined by 3.4 per cent to ૨ 206.15 billion.