Higher freight rates, unavailability of containers crippling agrochemical exports: CCFI

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20 September 2021, New Delhi: Crop Care Federation of India (CCFI) under the chairmanship of Mr. Deepak Shah, has sent a representation on behalf of Indian exporters to Shri Sarbananda Sonowal, Hon’ble Minister for Ports, Shipping and Waterways. The representation expresses deep concern on decline in agrochemical exports due to non-availability of containers and exorbitant increase in freight rates.

Mr. Deepak Shah said “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 for the need to stop cartelization by the shipping lines which is unjustifiable.

The Crop Care Federation of India has drawn the Ministers attention to the current situation where countries dependent on China for agrochemicals are looking to establish a sourcing base away from China. Indian industry is receiving exceptional response from major importing countries and cannot falter in their commitments.

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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.

Mr. 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 who are CCFI members. 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”

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 should be made available for export shipments piling up at all ports.

The industry body also appeal 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 at Indian ports.

CCFI also appeal to the Ministry of Shipping to recommend and appraise this urgent matter to the Ministry of Finance, so that exporters can be subsidized by the government to avoid the entire export effort from collapsing.

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