SME Times News Bureau | 27 Jun, 2020
In the wake of the India-China border clashes and the subsequent
hardening of positions on both sides, the worst apprehensions of Indian trade
and industry seem to be coming true, market sources said.
For over a week now, hundreds of thousands of cargo containers carrying all
kinds of import materials from China-Hong Kong, are now grounded at various sea
and air ports in the country.
These include around 1,000 containers containing critical spares, components
and finished units of agriculture sprayers worth over Rs 300 crore, and other
ready goods or spares of practically the A-to-Z of Indian industries,
triggering alarms in India Inc.
One of the unofficial reasons cited is "complete examination" of all
containers originating from China, opening each unit down to the individual
packing or box to check the contents, ostensibly on grounds of national
security besides stringent scrutiny of all documents, etc.
"In Jawaharlal Nehru Port Trust (Mumbai), around 200 containers of
urgently required agro-sprayers and spares are stuck. Farmers all over India
need them badly as the sowing season has started. If they don't get it by
early-July, their crop season may be ruined and we shall lose our full
investments," prominent agro-sector manufacturer-cum-importer Tushar C.
Padgilwar told IANS.
Padgilwar, the President of the Agri Sprayers TIM Association (India), rued
that besides the cargo that has already arrived, huge consignments are
currently sailing to India from China and would be hit similarly.
A leading import-export consultant from Thane said that containers originating
from China-Hong Kong, with all kinds of products – across industrial sectors,
perishables and critical goods - worth several billions of dollars, are
currently stuck at ports all over India, with no clarity from the authorities
on when these would be released.
"Certain types of cargo can wait, but most other kinds of goods,
especially perishables and pharmaceuticals, cannot be delayed... Moreover, the
importers have made full payments for the consignments, cleared customs duties
and even taken advance orders from their customers. Any unnecessary hold-up
creates huge complications for all stakeholders," said the consultant,
preferring anonymity.
Though the Customs Department and other officials concerned remain
tight-lipped, at the JNPT, notices are put up proclaiming: "China Origin
Consignment – Should Not Allow Delivery".
Institute of Chartered Accountants of Indias (ICAI) Western Region Council's
ex- Secretary, Aniruddh Shenwai, stressed the "need for a pragmatic
approach since any abrupt economic move can be disastrous" in the long
run.
"India depends hugely on China for various spares, raw or finished
products... Hence, such acts may be catastrophic with a cascading effect on the
entire Indian economy until viable, alternate sources with assured supplies are
made available to us," Shenwai told IANS.
Padgilwar, meanwhile, said: "We have no objections to the 'complete
examination' and 'documents scrutiny' which has begun at a couple of ports, but
the process must be expedited... (it) is affecting the entire business cycle
with future ramifications."
Normally, containers are unloaded and cleared within 48-72 hours, but since the
past one week, China-Hong Kong originated cargo containers are routinely held
up after the recent border issues in Galwan Valley, pointed out Mumbai trader
R.K. Jain.
Industry sources said that of all the container traffic in India, more than
two-thirds originates from China-Hong Kong, and the current border impasse has
already started impacting Indian business.
On its part, ASTIMA has shot off several representations to the JNPT and the
Union Government on the issue, but there is no response, as more than 100
ASTIMA members virtually jump at the slightest flutter on the India-China
borders.
Though Chennai Port has started clearing certain select items after thorough
scrutiny of the cargo and its documents, things are not moving in Mumbai or
Kolkata, or other major ports, said Padgilwar.