NEW DELHI: In the last six months, amid recession fears in the US, Europe and Russia-Ukraine war, there has been an increase in the logistic costs, Veenu Gupta, Additional Chief Secretary, Department of Industries, Rajasthan, said on Wednesday.
In an interaction with the TNIE, she said that the entire export industry is feeling the pinch of increase in freight and it has made demand for the some kind of subsidy in logistics. “Though it is at initial stages right now but the industry has demanded some kind of subsidy in logistics. We are considering it and may give some relief in coming times,” Gupta said.
As per Gupta, though the crude oil prices have moderated a bit from earlier highs, it will take some time to impact the fuel prices here in the country. “Last year there was an unprecedented growth in exports. It was 26% in the state of Rajasthan. But for the last six months, there has been an increase in freight and shipping line charges. The entire export sector is feeling the pinch,” Gupta stated.
India’s trade deficit touched a record high in July, as high commodity prices and a weak rupee widened the country’s import bill. India’s merchandise export remained almost flat on an year-on-year basis at USD 35.24 billion in July 2022. It was at USD 35.51 billion in July 2021. Meanwhile, as per Nomura, Indian port volumes fell in July owing to fall in exports of chemicals and engineering goods. However, on the domestic logistics front, container volumes for July surged 19.7% year-on-year, and 2.6% sequentially.