The Logistics cost has seen an uptick in the last six months, amid recession fears in the US, Europe, and Russia-Ukraine war, Veenu Gupta, Additional Chief Secretary, Department of Industries, Rajasthan, said on Wednesday.
Saying that the entire export industry is feeling the pinch of an increase in freight she highlighted that the logistics industry has made a demand for some kind of subsidy. “Though it is at initial stages right now the industry has demanded some kind of subsidy in logistics. We are considering it and may give some relief in coming times,” Gupta said.
According to Gupta, despite the slight relief in the crude oil prices, it will take some time to impact the fuel prices here in the country. “Last year there was 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.
In July, India’s trade deficit touched a record high, as high commodity prices and a weak rupee widened the country’s import bill. Merchandise export in the nation remained almost flat on a 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 a 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.