Indian exporters have sought priority shipment facilities for local micro, small and medium enterprises (MSME) as transhipment of Bangladesh’s export cargo to third countries through the Delhi Air Cargo complex is causing delays, inflating freight expenses.
The Noida Apparel Export Cluster (NAEC), where 80% of the apparel production and export units are MSMEs, has sought a 25% quota for such units in the cargo with priority in shipment. Air freight has quadrupled in the past two months, say exporters.
Last year in February, India allowed the Delhi Airport to act as a cargo transhipment hub between Bangladesh and other export destinations, thereby expanding the existing transhipment policy through the Kolkata Air cargo complex. “The cargo slots at Delhi Airport are swamped with Bangladesh shipments, resulting in their exporters benefitting at the cost of Indian exporters,” said Lalit Thukral, President NAEC. After the Red Sea crisis, a lot of traffic has shifted to the air mode. Items such as leather goods, which were conventionally not shipped by air, are now being transported via flights, pushing up air freight. The cargo that cost ₹35 per kg to be shipped to Europe via air three months ago, is now being shipped at ₹140 per kg.
“India has given transit facility to Bangladesh export cargo from Delhi Airport besides Kolkata. Simultaneously, air freight has also increased because of the geopolitical situation including Red Sea crisis. We have taken this up with commerce department as it has led to delay in export cargo particularly of MSMEs due to space constraints , on some of the busy routes, in regular flights,” said Ajay Sahai, director general, the Federation of Indian Export Organisations.
The Apparel Export Promotion Council has sought suspension of the transshipment facility to Bangladesh. “Textile exporters in Bangladesh already receive several benefits such as subsidies from the government and have preferential treatment under the free trade agreements. The transhipment policy has further compounded the situation for Indian exporters,” added Thukral.
