Shortage of containers, unfair charges levied by shipping lines hampering export growth, says EPCH
NEW DELHI – 30th March 2021– In order to ensure that handicrafts sector keeps growing at a brisk pace and continue to earn much needed foreign exchange and provide livelihood to millions of craftspersons, it is important that the logistic system (availability and movement of containers) should support and compliment the efforts made by the artisans and exporters.
Ravi K Passi, Chairman-EPCH drew attention of the Minister of Railways, Commerce & Industry towards the problem of the shortage of availability of containers for exports and said that the current Covid crisis has resulted in stalling the exports growth and despite business activity picking pace in the 2nd quarter onwards, any disruption at this critical stage in shipments would deal a severe blow to all the export promotion efforts by all the stakeholders. Adding further, he said, any delay in Shipment may also lead to the cancellation in export orders as well.
He thanked the Minister for his intervention in the past but drew his attention towards one important problem that is hampering export growth at the present. The charges being levied by the shipping lines for each container as the sea freight charges has increased manifold, clearly indicating unfair trade practice by shipping lines. The problem is further being compounded with the increase in raw material prices. He urged the Government to urgently look into the matter, so that exports from the country can continue without any hindrance and help facilitate timely shipments of the export consignments and thereby promote exports from the country.
He further requested the Government to consider establishment of a Regulatory Authority through enactment of the Parliament to control and monitor the pricing, terms & conditions and other provisions relating to the shipment of goods. The current shipping lines are arbitrarily deciding the pricing and imposing conditions at their whims and fancies.
The estimated figures for exports of handicrafts for the period April-February of the current financial year 2020-21 which stands at Rs. 22774.58 crores (USD 3062.76 million) registering a negative growth of (-)3.40 % (Rupee terms) and (-)8.31% (dollar terms) over the same period last year.
