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INDIAN EXPORTERS QUEST FOR GOVERNMENT INTERVENTION ON CONTAINERS SHORTAGE AND FREIGHT COSTS CRISIS

 IPC  17/08/2021  609
Following to the lack of containers/liners availability for spice trade especially black pepper export, the Indian spice trade has sought for the Central Government’s intervention to ensure that the export trade does not get hindered from the lack of space availability on the ships and empty containers to load cargo.

The costs surge in ocean freight has also made exporters to disburse significantly higher rates as required by the liners in order to meet their export commitment. Thus, it has affected the export business to be very volatile and uncertain. In order to find the best solution for the issue, All India Spices Exporters’ Forum (AISEF) stated that the Spices Board is setting up a meeting with the Shipping Ministry in the next few weeks.

India’s Spike of Pepper Export and Import

Based on the statistic released by the Department of Commerce, Ministry of Commerce and Industry of India, India’s figure of whole and ground pepper export has shown a significant increase of 48% to 9,364 Mt from January to May 2021 period. During this period, India’s export has amounted to 54% of the total export figure in 2020.

Furthermore, following the same trend, import of pepper by India has also shown a staggering increase by 52% at 14,847 Mt from January to May 2021 period. Similarly, India’s import has also amounted to 54% of the total import figure in 2020.

Currently, India “Malabar Black Pepper” was traded at an average of USD 5,292/Mt domestically and USD 5,562/Mt internationally (August 2021).

Source: https://www.thehindubusinessline.com/economy/agri-business/spice-trade-seeks-government-help-as-container-shortage-soaring-freight-costs-hit-exports/article35872298.ece  

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