Bangalore, 22 Oct (KNN) MSME exporters based in Karnataka have raised issues pertaining to the increase in container costs from around INR 1.5 lakh to INR 11 lakh.

“This is threatening to put a spanner in the works of improving exports and imports scenario and the government has to act immediately before it has an adverse effect on the economy,” cautioned Karnataka Small Scale Industries Association (KASSIA).

The Association suggests that the Central Government should consider providing freight subsidy to the exporters and importers too as the latter are unable to pass on the extra cost to their suppliers.

“No business can survive when prices rise by almost ten times, while the businesses are also hit by a severe container shortage due to the impact of closure of Chinese ports or their operating at subdued level. If the government does not intervene, then a large number of MSME exporters may be compelled to shut down,” expressed KASSIA.

They pointed out that developed countries like the United States of America were responding to the evolving situation by opening up its ports 24/7 to keep businesses afloat.

KASSIA appealed to the government to respond to concerns of the exporters and importers, underlining the possibilities of India losing out in the global trade ahead of the crucial holiday season orders in the West.