Exporters’ demand measures to address logistics issues in India

Textile and garment exporters have sought measures by the Union government to address the issue of container shortage.

In an interaction recently with the Prime Minister, the export promotion council heads pointed out the challenges they face on the logistics front.

According to Manoj Kumar Patodia, chairman of the Cotton Textiles Export Promotion Council, the acute shortage of containers and the need for greater focus on logistics development were emerging as major challenges. He urged the Government to step in immediately to address the issue of container shortages faced by the exporters which is turning out to be very serious. He also appealed to the Government to include textiles in the priority list while negotiating Free Trade Agreements with the UK, the European Union, Canada, and Australia.

Apparel Export Promotion Council chairman A. Sakthivel said the government should look at FTAs with the UK, the EU, and the US, and CEPA with Canada and Australia. Shortage of containers is affecting all exporters and the Government should advise shipping companies to bring empty vessels directly to India, he said. India should develop an Indian Shipping Line of global repute so that the country saves over $ 50 billion annually which exporters are currently remitting as freight charges.

While the demand for exports is very good, exporters are facing cash flow issues as buyers are asking for longer periods of credit. Dues from the Government should be released quickly, which will help the exporters, he said.