Govt considers more support for exporters as West Asia tensions drive up freight costs
NEW DELHI : The Government is considering additional measures to help exporters cope with disruptions arising from the West Asia crisis, including a possible extension of freight subsidies, as many are being forced to take longer shipping routes, officials said.
The Commerce and Industry Minister Shri Piyush Goyal said on Thursday that,“the government has already announced measures to help exporters tackle the impact of the West Asia crisis, and some more decisions are on the anvil,” .
An official said that while relief has been extended on insurance, the government is now examining the possibility of easing the burden of elevated freight rates, which have risen sharply for several destinations.
“All ministries and departments concerned are looking at various ways in which assistance can be extended to industry to cope with the crisis,” the official said.
Following the escalation of tensions in West Asia in recent weeks, shipping routes have been significantly disrupted, leading to higher freight and insurance costs, as well as concerns over the availability of key inputs, including petroleum products.
Trade impact
Goyal said he discussed the geopolitical situation in bilateral meetings with trade ministers on the sidelines of the WTO ministerial meeting in Cameroon, with many expressing concern over the impact on global trade.
“It has hurt the global economy. It is hurting global trade. The death and destruction of property and innocent lives is something that we are all concerned about. The difficulties in the free movement of goods across open seas is another issue we are collectively hoping can be resolved quickly,” he said.
India, however, has shown resilience on food and energy security, Goyal added. “Consumers are getting their LPG. Industrial LNG supplies have been reinstated to about 80 per cent, with several sectors receiving full supply. There is no shortage of petroleum products. Our refineries are operating at full capacity. There are sufficient crude oil stocks, and fresh shipments of crude oil, LPG and LNG are ensuring supply continuity,” he said.
