Exports take a huge hit despite the drop in freight charges

  • March 27, 2023
  • News

According to the reports, even after a drop in freight tariff, the exports across all sectors need to be up to the levels of the corresponding period of last year amid fluctuation of currency and a slowdown in global demand that is severely hitting the manufacturers. Exporters said that the freight rates in almost all the shipping lines have dropped by at least 40% in over a month.

The overseas market demand has reduced and due to that most industries are hit, moreover, the micro, small and medium enterprises that were engaged in pharma, engineering and processed food are badly affected.

Paresh Chawla, Chairman of the Indian Drug Manufacturers’ Association, MP State Board’s said that export is a concern in the pharmaceutical sector due to unpredictability in currency and due to lukewarm global demand. The drop in foreign reserves in countries has made exports challenging.

A drug manufacturer said that the drop in export orders has affected businesses but an upsurge in government purchases has boosted the domestic market. Raw material rates have also come down and this is reviving the profit margins.”

Industry players said freight rates had come down by around 40% on most lines, supporting exports from India in the long run.

A senior executive from a packaging films manufacturing industry said that exports are about 10% down when compared to last year, this is due to the lack of price parity in the international market. Freight costs have come down by around 40% from the covid-19 period but still, exports have not been able to match last year’s level.