India- Container shortage persists drag exports growth: FIEO -

India- Container shortage persists drag exports growth: FIEO

Responding to February 2021 export figures, FIEO President, Sharad Kumar Saraf said that the monthly exports rose marginally by 0.67 per cent to 27.93 billion dollars, mainly on account of container shortages across the country and limited supply disruptions in the last week of the month due to increasing COVID cases in certain states.

He said that all the major sectors of export, which during the previous month were in positive territory, continued with a similar positive growth trend during February also.

‘We continue to see signs of further revival not only in the order booking positions but also in the demand from across the globe, paving way for much better days and months for the sector. However, rising exports from China has led to the shortage of containers in the region as most of the empty containers are available only for exports from China, as the shipping lines and container companies are being paid hefty premiums for bringing empty containers back to China,’ a statement quoted him as saying on Monday.

FIEO president added that the exports of other cereals along with oil meals, iron-ore, jute mfg. including floor covering, rice, cereal preparations and miscellaneous processed items, meat, dairy and poultry products, carpet, spices, drugs and pharmaceuticals, handicrafts excl. hand-made carpet, ceramic products and glassware, cotton yarn/fabrics/made-ups, handloom products etc., tobacco, plastic and linoleum, mica, coal and other ores, minerals including process and organic and inorganic chemicals showed either a very high or impressive growth or were in positive territory showing signs of further improvement.

FIEO Chief also said that negative growth in exports of major products including petroleum products, oil seeds, leather and leather manufactures, cashew, gems and jewellery, RMG of all textiles, electronic goods, fruits and vegetables, man-made yarn/fabrics/made-ups etc, engineering goods, tea, coffee and marine products, which have major contribution in the country’s exports basket and also related to labour-intensive sector of exports have been of key concern.

‘Further an increase in February 2021 imports by about 7 per cent to 40.54 billion dollars compared to the same period during the previous fiscal led to a trade deficit of 12.62 billion dollars, which is an increase of 24.14 per cent during the month.
Source: KNN India

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