Govt eases air cargo rules to boost India’s fruit and vegetable exports
NEW DELHI : Exporting fruits, vegetables, and other perishable goods from India just got a lot easier. The Central Board of Indirect Taxes and Customs (CBIC) has announced a set of reforms to simplify air cargo movement and reduce red tape, which could help farmers, exporters, and logistics companies alike.
The changes aim to make it faster and cheaper to move goods, especially high-value and time-sensitive products like grapes, mangoes, onions, and processed foods, through India’s airports. The move is in line with the 2025-26 Union Budget’s promise to modernise customs procedures and boost agricultural exports.
In a long-awaited reform to ease logistics bottlenecks, CBIC has abolished the fee for transhipment permits with effect from April 24, 2025. This change, implemented via Notification No. 30/2025-Customs (N.T.), is expected to reduce procedural delays and costs associated with inter-terminal cargo movements. Industry stakeholders anticipate significant time and cost savings, especially for logistics operators handling large cargo volumes.
Until now, cargo that moved between ports or customs stations needed a special permit that came with a fee. That fee has now been scrapped. This means companies can move goods more freely, saving time and money in the process. It’s a small change with a big impact, especially for those handling large volumes of goods.
Addressing long-standing concerns from the air cargo sector, CBIC has introduced a harmonised process for the temporary import of Unit Load Devices (ULDs) outside the Customs area. The move mirrors existing marine container protocols and allows air carriers or console agents to assume re-export responsibilities via a Continuity Bond. Previously, this responsibility rested solely with importers. The change is seen as a step toward aligning Indian customs practices with global logistics standards, particularly benefiting time-sensitive cargo such as perishables and pharmaceuticals.
Air cargo is often packed in containers called Unit Load Devices or ULDs. Exporters and airlines had to go through complicated steps if they wanted to move these containers outside airport customs areas. Now, CBIC has introduced a simpler system that lets airlines or logistics agents take responsibility for the containers instead of the importers. This is expected to speed up the handling of perishable items like fruits, vegetables, and medicines.
Operational since 2022, the All-India National Transhipment Bond system is now being actively encouraged for wider adoption. This facility eliminates the need for airlines to submit multiple bonds at different Customs locations, thus simplifying compliance for frequent import cargo movements.
Earlier, airlines had to submit multiple bonds at each customs station to move cargo between different places. Now, a single “All-India Transhipment Bond” can be used across the country. This cuts paperwork and makes the entire process more efficient.
CBIC has also digitised the transhipment application process via ICEGATE, the Indian Customs EDI gateway. This removes the need for physical visits to service centres, marking another step toward a fully paperless customs environment.
CBIC has also digitised the process of applying for cargo movement permits. Exporters and logistics agents can now file applications online through ICEGATE (the Indian Customs portal), without visiting any service centre in person.
These changes couldn’t have come at a better time. India’s fruit and vegetable exports have been growing steadily. In the first 11 months of the financial year 2024-25, exports of fresh produce rose over 5% to $3.39 billion. With massive production – over 112 million tonnes of fruits and 204 million tonnes of vegetables last year – India has the potential to be a global food export powerhouse.
India is already the world’s top producer of bananas, mangoes, papayas, onions, and okra. Major export destinations include Bangladesh, the UAE, the Netherlands, the UK, and Saudi Arabia.
While India’s share of the global market is still just about 1%, there is increasing demand for Indian produce, thanks to improvements in cold storage, packaging, and quality control. Public and private investments, including government-backed cargo hubs and post-harvest centres, are helping improve infrastructure.
Experts say these reforms could give a big push to exporters, especially small and medium-sized ones, by cutting costs and reducing delays. They’re also likely to improve India’s position in global agricultural trade. CBIC is encouraging exporters, airlines, and logistics providers to take full advantage of the new measures to speed up shipments and grow their business.