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FIEO to focus on new products, markets for diversification to boost outbound shipments
Sep-21-2021

Apex exporters' body Federation of Indian Export Organisations (FIEO) has said that it will focus on new products and markets for diversification with a view to boosting the country's outbound shipments. Further, FIEO President A Sakthivel said that the order booking position is encouraging till October, but many exporters are not in a position to take further contracts due to erosion of liquidity and uncertainties on the policy front. 

Sakthivel said ‘I have raised the issue of shortage of containers, frequent shutouts by the shipping lines and exorbitant freight rates, that are having a dampening effect on the exports, with Commerce Minister Piyush Goyal.’ He also said that the other issues which FIEO has raised with the government include rationalization of the export policy of raw material to strike a balance between exports and domestic requirement; automatic enhancement of the existing working capital requirement by 20-25 percent by banks; extension of factoring facilities with institutions like ECGC; and removal of transport and logistics problems by regulating the movement of empty containers from India.

FIEO President has also highlighted the skyrocketed increase in freight rates between 300 percent to 350 percent and to some destinations like South America and West Africa, it is over 500 percent. He also suggested that freight subsidy may be given till freight charges normalize. He added that large ships may be encouraged to call on some Indian ports so that the backlog is reduced, and the Shipping Corporation of India may be asked to take a few ships on lease for sailing to major exports/imports destinations.

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