SME TImes News Bureau | 05 Mar, 2021
Responding to February 2021 export figures, FIEO President Sharad Kumar
Saraf said that the monthly exports declined marginally by 0.25 percent to USD
27.67 billion mainly on account of container shortages across the country and
limited supply disruptions in the last week of the month due to increasing
Covid cases in certain states.
All the major sectors of export, which during the previous month were in
positive territory, continued with a similar positive growth trend during
Saraf said that we continue to see signs of further revival not only in the
order booking positions but also in the demand from across the globe, paving
way for much better days and months for the sector.
However, rising exports from China has led to the shortage of
containers in the region as most of the empty containers are available only for
exports from China as the shipping lines and container companies are being paid
hefty premiums for bringing empty containers back to China, he added.
The FIEO President added that the exports of other cereals along with oil
meals, iron-ore, jute mfg. including floor covering, rice, cereal preparations
and miscellaneous processed items, meat, dairy and poultry products, carpet,
spices, drugs and pharmaceuticals, handicrafts excl. hand-made carpet, etc.
The FIEO chief also said that negative growth in exports of major products
including petroleum products, oil seeds, leather and leather manufactures,
cashew, gems and jewellery, RMG of all textiles, electronic goods, fruits and
vegetables, man-made yarn/fabrics/made-ups etc,
Further an increase in February 2021 imports by about 7 percent to USD
40.55 billion compared to the same period during the previous fiscal led
to a trade deficit of USD 12.88 billion, which is an increase of 25.84
percent during the month.
The FIEO President urges the government to soon notify the RoDTEP rates to
remove uncertainty from the minds of the trade and industry thereby forging new
contracts with the foreigner buyers.
Saraf also reiterated that the government must address some of the key
issues including timely announcement of the new FTP, adequate availability of
containers, release of the required funds for RoDTEP, MEIS and clarity on SEIS
benefits, softening of freight charges, resolving risky exporters' issues and
continuance of seamless refund of IGST.
Besides long pending demand for the creation of an Export Development Fund
for marketing of Brand India products and various other infrastructure bottlenecks
also needs to be looked into to bring back exports on the double-digit growth
trajectory, he added.