The Commerce Ministry will set up a weekly monitoring mechanism to keep an eye on export and import trends and regional stress indicators. This step has been taken amid concerns that the industry may be affected due to supply chain disruptions, logistics bottlenecks and rising costs due to global tensions. In this sequence, in two separate meetings held on March 9, exporters discussed the rising cost of packaging material and the obstacles being faced in the movement of ships in international waters, especially in the West Asia region. In the meeting chaired by Commerce Secretary Rajesh Aggarwal, the challenges posed by the shortage of packaging material and its related raw materials were discussed. It was observed in the meeting that current global developments may impact the availability and prices of key petrochemical materials such as polymers and resins. Because of this, packaging material can become expensive in all areas.
Discussion took place on these issues
Industry representatives mentioned the increase in prices of critical materials, which is putting special pressure on Micro, Small and Medium Enterprises (MSMEs). Exporters said logistics bottlenecks and rising costs could hit industries like apparel, leather, telecom and medical devices. The ministry said in a statement that all stakeholders have stressed the need for assistance with regard to early release of GST refunds to improve liquidity (cash flow) along with continued availability of essential inputs such as LNG, helium and petrochemical derivatives. Aggarwal stressed the need for timely valuation of essential packaging inputs, which includes assessing domestic production capacity and identifying import dependence.
Monitoring system will be made
The statement said that he informed that a systematic monitoring system will also be created to keep an eye on export-import trends and signs of stress related to the sector on a weekly basis. After the meeting, the Ministry of Ports, Shipping and Waterways has directed all port and terminal operators to take immediate steps to increase transparency and efficiency of functioning. The ministry said that these measures include making public the concessions and exemptions given to cargo and ships, reviewing the availability of bunker fuel, and removing stranded containers at the earliest, which will strengthen the efficiency of the entire system.
facing challenges
Logistics related issues were discussed between the Commerce Secretary, Shipping Secretary, senior officials, port authorities, shipping agencies, Export Promotion Councils (EPCs), industry representatives and other concerned stakeholders. Due to the ongoing conflict in West Asia, exporters are facing challenges in sending goods to the Gulf region. India’s bilateral trade with this region in 2024-25 will be US $ 178 billion, which includes exports of US $ 56.87 billion and imports of US $ 121.67 billion.