Expedite logistic policy to mitigate freight cost burden: Exporters to Govt
New Delhi, Jan 24 (KNN) The Indian exporters have called out for the government to roll a long due logistic policy and has urged the administration to take up the high freight cost matter with the WTO before India loses its share in the international market.
Talking about the substantial increase in freight cost due to covid-19, an official at Federation of Indian Export Organisation (FIEO) told KNN India how it has adversely impacted exporters particularly the sectors which are from the high volume and low margin sectors.
In spite of high freight rates, exporters are not assured of container availability, confirmed bookings and sailings, the official said.
The FIEO official spoke about how delivery schedules have also been impacted due to high transit times and how supply chain disruption also impacted the production cycles as exporters were not able to get raw material in a timely fashion and on the other hand were witnessing piled up inventories.
“Now, with intervention of all stakeholders, we are seeing improvement in the overall situation. Overall, there is a need to bring visibility and transparency in this space which will add to the competitiveness of export sector and the industry is eagerly awaiting the announcement of the much awaited Logistics Policy,” added the official.
Prashant Patel, Exporter based in Gujarat cum FISME Vice President while talking with KNN said, India doesn’t poses a decision making position in the International market, however the government should take up the issue of surge in freight cost and with WTO.
There must be a reduction of 25 per cent in freight cost to help the industry, he said.
In view of technology upgradation and digitalisation, exporters are of the opinion that it will facilitate the initiative of bringing transparency in the industry.
Recently Abhijeet Sinha, National Program Director EODB was speaking at event pertaining to this matter and he said, if steps are not taken to reduce these costs, then we’ll never be able to develop a robust supply chain network and compete with export-oriented countries.
He called digitalisation as the most important thing in the whole process to reduce the cost.