**India’s Logistics Bottleneck: Exporters Seek Relief from High Terminal Handling Charges** As India aims to reach $800 billion in goods and services exports in the fiscal year 2025, the country’s logistics sector is facing significant challenges. Exporters and freight agencies have raised concerns over high terminal handling charges at ports and underutilization of dry ports, which are adding to the country’s overall logistics costs.
Terminal Handling Charges: A Major Concern for Exporters
The Commerce and Industry Minister Piyush Goyal recently held a meeting with a delegation of exporters and freight agencies to discuss logistics and shipping challenges. According to officials, the meeting was an opportunity for the government to gauge the industry’s concerns and work towards reducing costs across the supply chain. Exporters have reported that the fees charged by shipping terminals for container storage and positioning before loading exceed port charges by a whopping Rs 10,000-15,000 per consignment. These extra charges are not only increasing the logistical costs but also giving India’s exporters a disadvantage in the global market.
Action Needed to Boost Exports: Reducing Logistics Costs
To achieve the target of $800 billion in exports, the Indian government recognizes the need to reduce logistics costs. The meeting with the Commerce and Industry Minister is a step towards streamlining the logistics sector and alleviating the difficulties faced by exporters. The Ministry is working closely with various stakeholders to create a more efficient supply chain that can support the country’s ambitious export targets. With a slight increase of $22 billion in exports compared to the previous fiscal year, there is still a long way to go to achieve the desired goal.
National Logistics Policy: The Government’s Solution to the Problem
India’s National Logistics Policy aims to provide a comprehensive framework for the logistics sector. By addressing the glitches in the existing system, the policy seeks to make logistics more efficient, reliable, and cost-effective. This initiative will help exporters and freight agencies in streamlining their operations and reducing costs associated with transportation and storage. The policy also focuses on promoting digitalization, encouraging competition, and collaborating with private sector players to make India’s logistics sector more resilient and competitive globally.
India’s Logistics Sector: The Road Ahead
As India strives to reach its ambitious export targets, the logistics sector remains a vital area of focus for the government. The sector has been witnessing growth due to increasing trade, but high-terminal handling charges, underutilized dry ports, and inefficient supply chain processes are putting a brake on this growth. With the government working towards creating a more efficient logistics ecosystem, there’s hope that India’s logistics sector will rebound, supporting the nation’s drive for increased exports and economic development.
