Commerce and Industry Minister Piyush Goyal on Friday defended a market-driven approach to freight and shipping rates, stating that government regulation of freight charges could create unintended consequences, even as exporters face mounting logistics costs amid geopolitical tensions in West Asia.
Speaking at the National Workshop on Seafood Exports in Visakhapatnam, Goyal said the government is supporting exporters by helping mitigate the impact of rising freight and insurance costs caused by disruptions in the Strait of Hormuz and the wider West Asia region.
He noted that freight rates had remained unusually low for several years before surging due to multiple global conflicts. Imposing regulatory controls on shipping rates, he argued, could lead to persistently higher freight costs even during periods of normal market conditions.
Goyal said global trade mechanisms generally absorb fluctuations in shipping costs, with export pricing adjusting in line with freight rate movements. He also highlighted India’s relatively stable fuel prices, noting that while diesel prices have increased by more than 50% in several countries, domestic price increases have remained comparatively moderate, helping keep inflation among the lowest globally.
On the fisheries sector, the minister said India’s export basket is becoming increasingly diversified, supported by government initiatives to promote aquaculture of fish species traditionally sourced from colder regions. He cited a 40% increase in tiger prawn exports and a 30% rise in exports of squid and cuttlefish.
RELIEF Scheme Continues Support for Exporters
Goyal’s remarks come as the government continues implementation of the Resilience & Logistics Intervention for Export Facilitation (RELIEF) scheme under the Export Promotion Mission (EPM), launched on March 19 to address disruptions in maritime logistics across West Asia.
The scheme covers exports destined for or transiting through key regional markets, including United Arab Emirates, Saudi Arabia, Kuwait, Israel, Qatar, Oman, Bahrain, Iraq, Iran, Egypt, Jordan and Yemen.
Introduced as a targeted intervention, RELIEF aims to assist exporters affected by extraordinary freight rate increases, higher insurance premiums and war-related trade risks linked to disruptions in the Gulf and broader West Asia maritime corridor.
Under the scheme:
Exporters who secured ECGC credit insurance cover for eligible consignments between February 14 and March 15, 2026, are eligible for up to 100% additional risk coverage over existing protection at no extra cost.
For shipments planned between March 16 and June 15, 2026, government support provides up to 95% additional risk coverage for exporters obtaining ECGC insurance.
MSME exporters that did not avail ECGC cover but face extraordinary freight and insurance surcharges can receive reimbursement of up to 50% of eligible costs, subject to prescribed conditions and documentary verification, with assistance capped at ₹50 lakh per exporter.
The RELIEF initiative is being implemented through Export Credit Guarantee Corporation of India as the nodal agency and is intended to strengthen exporter resilience against logistics disruptions stemming from the ongoing geopolitical situation in West Asia.
