Scarcity of containers, higher freight rates dampening agrochem exports: CCFI
Chemical

Scarcity of containers, higher freight rates dampening agrochem exports: CCFI

Freight increase ranging from 250% to 800% was not only totally unexpected during last one year, but it has resulted in significantly lower exports.

  • By ICN Bureau | September 20, 2021

Industry body Crop Care Federation of India (CCFI) recently met Sarbananda Sonowal, Minister for Ports, Shipping and Waterways to update him on the challenges being faced by the Indian agrochemical exporters. The representative of CCFI expressed deep concern on decline in agrochemical exports due to non- availability of containers and exorbitant increase in freight rates.

“Freight increase ranging from 250% to 800% was not only totally unexpected during last one year, but it has resulted in significantly lower exports. We have appealed to the Shipping Ministry the need to stop cartelization by the shipping lines which is unjustifiable,” Deepak Shah, Chairman, CCFI, said.

The Federation of India has drawn the Ministers attention that in the context of Indian expertise in chemicals and the need for all major countries currently wholly dependent on China, to create sourcing bases away from China. Indian industry is receiving exceptional response from major importing countries and cannot falter in their commitments.

This has also resulted in surge in Imports into India including from China an increase both in quantity and in price terms over the last 20 months and regular imports continue to come in.

Harish Mehta, Senior Advisor, CCFI said “Indian agrochemical exports have reached 30,000 crores. India is now exporting to 130 countries. Almost 90% of exports were made last year by indigenous manufacturers. This growth trend must be maintained to establish our global supremacy in quality and price. The entire burden of additional freight is crippling the export business,” Mehta said.

CCFI requested the Ministry of Shipping that within possibilities and in support of national efforts any container likely to be held beyond 2 weeks may please be allowed to be destuffed and empty containers made available for export shipments piling up of all ports.

The Federation also appeals to the Ministry of Shipping to recognize the urgency of this matter and recommend urgent steps to mitigate this terrorism of profiteering unleashed by shipping lines calling at Indian ports.

“We appeal to the Ministry of shipping that it should recommend and report this very urgent matter to the Ministry of Finance, so that exporters can be subsidized by the government to avoid the entire export effort from collapsing,” CCFI said.

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