AS THE Middle East crisis has disrupted EXIM trade, Vidarbha's export industry is facing a significant downturn in business. The impact has been particularly severe, with exports of key commodities such as rice, pulses, spices, steel, and other goods plummeting by 30-40 per cent. As a result, exporters are counting on the Government to intervene and provide muchneeded relief. The exportersof theregion are seeking measures such as reimbursement of Ocean FreightWar Surcharge, waiver of InlandFreight charges, and other supportive steps to mitigate the crisis. ManoharBhojwani,President of Mihan Industries Association, said that the situation is dire,and exporters are anxiously awaiting a response from the authorities to help revive the region’s ailing export sector.

 

“Due to ongoing conflicts, global shipping lines have imposed heavy ‘war risk surcharges,’ that have drastically increased export costs. “The shipping lives are charging $ 500 to $ 1,500 per container as Ocean Freight War Surcharge. This has drastically increased ocean freight. For example, an exporter has to pay an additional charge of $ 1,300 per container foraconsignment moving fromMumbai toCanada or the US. This is in addition to the regular ocean freight of $ 2,400 per container,” he explained. Bhojwani further said that the cost of transporting containers from Inland Container Depots (ICDs)/DryPorts toseaportshas significantlyburdenedexporters.

 

The exporters urged the Government to reimburse the war surcharge component of ocean freight to ensure Indian exporters remaincompetitivein global markets. Similarly,theyalsowantacompletewaiverorsubsidyoninland freight from ICDs to ports. Highlighting another concern, Vidarbha’sMSME exporters and industryrepresentativessaiddue to extended transit timescaused by rerouted shipping lines and portcongestion,exportpayment cycles have become unusually long. This has created a severe working capital crisis. “The banks must be directed to provide immediate, collateral-free packing credit against confirmed exportorders. Special liquidity windows should be introduced to ensure uninterrupted export operations,” they observed. The exporters are also demanding mandatory war risk insurance coverage for export consignments. In thecurrentscenario, the export consignments are now exposed to significant risksdue towarzones and unstable shipping routes.

 

The Government should facilitate or subsidize comprehensive warrisk insurance coverage for all export shipments to safeguardexporters fromunforeseen losses, said the exporters. “If timely intervention is not provided, India risks losing its hard-earned global export markets, particularly in sectors like agriculture,foodprocessing,and value-added products where MSMEs play a vital role. These measures are not only essential for safeguarding exporters but also critical for protecting employment, sustaining foreign exchange earnings, and maintaining India’s credibility in international trade. We sincerely appeal to the Government for immediate and decisive action to support MSME exportersduring this challenging period,” said the exporters.