KOCHI: The high air freight charges and the 18% GST imposed on exports have forced Indian exporters to hike commodity prices which, in turn, has affected competitive pricing of Indian products in international market, said a general body meeting of All Kerala Exporters Association held in Kochi on Tuesday. The meeting urged the Union Commerce Ministry and Civil Aviation Ministry to initiate steps to reduce air freight charges.
Due to high prices, Indian products are not able to compete with products from Thailand, the Philippines, Indonesia and Vietnam. This has led to a 40 - 45% reduction in export volume of vegetables from Kerala compared to pre-Covid times. This has led to a steep decline in foreign exchange earnings of the country. The decline in export volume has affected farmers and farm labourers adversely, said a resolution passed in the meeting. Federation of Indian Export Organisations director M C Rajeev, among others, spoke.