Exporters Struggling With A Shortage Of Containers
Exporters struggling with a shortage of containers, export target seems to be off even after orders are full.
Looking at the orders, there is the full expectation of an increase in exports in the coming months. But exporters say that this is possible only after eliminating some of the problems of the export route.
The biggest problem facing exporters is the lack of containers. They are also facing difficulty in operating capital due to the stagnation of old incentives and GST refunds.
According to the exporters, they are currently getting good orders from all places. The figures for the last two months are also showing good signs for Indian exports.
During January this year, the export of goods increased by 6.16 percent over the same month last year. According to the provisional figures for February, exports fell by 0.25 percent compared to the same month of the previous year.
However, excluding petroleum products and gems-jewelery, exports of other items increased by 5.65 percent during February this year.
This simply means that there is a strong trend in export demand for other commodities. Exporters said that China manufactures 90 percent of the containers. Containers are not manufactured in India.
However, a few days ago the Container Corporation of India ([CONCOR)] ordered BHEL ([BHEL)] and Braithwaite to manufacture containers.
According to exporters, the cost of the container has doubled in the last six months. Freight shipping companies have also increased fares.
According to SC Ralhan, an exporter of engineering goods, there is no shortage of orders, only there is a problem of sending them.
Exporters struggling with a shortage of containers: Shortage of operating capital. Exporters told that the government owes incentives under the MEIS for the last year.
Sharad Kumar Saraf, chairman of the exporters’ association FIEO, said that during the last year, the exporters have not received 65,000–70,000 crore rupees from the government under MEIS.
GST refund has also not been received for the last two months. This has led to a shortage of operating capital with the exporters.
According to exporters, since January this year, the government has implemented the Remission of Duties and Tax on Export Products (Roadmap) scheme in place of MEIS, but the rate has not yet been decided.
Ralhan said, “Exporters have taken loans from the bank in the name of outstanding incentives, on the other hand, the prices of raw materials have gone up by 50 percent in the last four-five months.
There is a shortage of capital to do this work. ‘
Indus Food Fair encourages food exports
More than 700 buyers from 52 countries of the world are coming to the Indus Food Fair to be organized for the promotion of the export of food items.
The Indus Food Fair is being organized by the Trade Promotion Council of India (TPCI) on 20–21 March.
TPCI Chairman Mohit Sigla said that Indian exporters are expected to get orders ranging from 800 million to 1 billion dollars at the Indus Food Fair.
For the first time during the last year in the Corona-era, a fair is being organized for foreign buyers.
