The Agricultural and Processed Food Products Export Development Authority (APEDA), along with Transworld Group and exporters, held a joint industry meeting online on March 19, 2026, to address the ongoing disruption in trade flows caused by the Persian Gulf crisis and to outline support measures for Indian exporters.
The meeting was chaired by Abhishek Dev and moderated by Dr. C.B. Singh, Deputy General Manager at APEDA. Industry representatives, including members of the Kerala Exporters’ Forum, participated in discussions on rising logistics costs, stranded cargo, and alternative trade routes.
Government Launches RELIEF Scheme
During the meeting, APEDA highlighted a new ₹497-crore government support package titled Resilience & Logistics Intervention for Export Facilitation (RELIEF), announced by the Ministry of Commerce to assist exporters affected by the conflict and disruptions around the Persian Gulf and the Strait of Hormuz.
Key provisions of the scheme include:
- Insurance Coverage: Full insurance support for shipments that departed India without coverage from the Export Credit Guarantee Corporation of India between February 14 and March 14, 2026.
- Future Shipments Protection: For Bills of Lading issued between March 16 and June 15, war and political risk insurance will be offered at pre-conflict premium levels.
- Enhanced Loss Coverage: ECGC protection may be increased from 80% to 95% of potential losses, with the government subsidizing the additional cost.
- Support for MSMEs: Coverage capped at ₹50 lakh per exporter to prioritize small and medium enterprises.
- Target Regions: Special focus on refrigerated cargo exports to Gulf and West Asian markets including the United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, Iran, Iraq, Israel and Yemen.
Exporters Raise Concerns Over Costs and Delays
Representing exporters, Munshid Ali raised several operational concerns during the meeting. Exporters flagged sharply rising freight rates, higher insurance costs, and delays affecting perishable cargo.
Industry members also urged APEDA to engage with shipping lines to manage surging freight charges and explore alternative logistics options. Suggestions included routing cargo through Chabahar Port to access CIS markets and using GCC road networks to bypass disruptions near the Strait of Hormuz.
Exporters further highlighted issues such as containers stranded at Jeddah and poultry consignments stuck in transit. Another major concern involved additional “war risk coverage” charges demanded by shipping lines before issuing delivery orders, which exporters said is significantly increasing operational losses.
APEDA’s chairman directed the Kerala regional office to work closely with the Kerala Exporters’ Forum to document these issues formally so the matter can be taken up with the Directorate General of Shipping.
Transworld Outlines Logistics Support Measures
Transworld representatives acknowledged the pressure on exporters due to rising bunker costs, insurance premiums, and crew wages, and outlined several operational initiatives to keep cargo moving.
Among the key measures:
- Alternative Sea-Land Corridor: A green corridor linking Port of Sohar and Port of Salalah with Jebel Ali Port via bonded trucking routes, enabling faster clearance and transit of diverted cargo.
- Port Handling Strategy: While Khorfakkan Port remains available for perishables, Jebel Ali is actively evacuating containers through bonded land transport to ease congestion.
- Air Cargo Solution: Transworld will launch a Mumbai–Sharjah–Mumbai air charter service starting March 24 to support urgent shipments.
- Cochin–Gulf Charter Plan: The company is also considering a dedicated charter service from Kochi to Gulf destinations, subject to sufficient cargo volumes and regulatory approvals.
Industry Reassurance
Concluding the meeting, APEDA and Transworld assured exporters that authorities and logistics partners are working together to maintain supply chain continuity despite geopolitical volatility in the region.
The agencies emphasized that the combination of the RELIEF scheme, alternative routes, and additional air and sea capacity is aimed at minimizing disruption and protecting India’s agricultural and perishable exports to key Gulf markets.
