The Federation of Indian Export Organizations (FIEO), an apex body of Indian export promotion organizations, has urged the government to provide freight support to all exports including pharmaceuticals till 31st March 2022, as freight rates have skyrocketed and are likely to somber by March 2022.

Over the past one year, there has been an exceptional rise in freight costs that has significantly affected the Indian pharmaceutical industry. The outward freight costs have risen by 14 percent. The cost of inward freight of imports has increased by 50 percent.

Besides this, the industry has been plagued by scarcity of empty containers. The shortage of containers has hit the export of pharmaceuticals from all ports to different countries.

FIEO president Dr A Sakthivel said though the government has announced a slew of measures to support exports, the need of the hour is to provide freight support to all exports till 31st March  2022 as freight rates have gone up significantly.

He further said augmenting the flow of empty containers and establishing a regulatory authority to seek justification of freight hike and imposition of various charges by the shipping lines need urgent intervention of the government.

Dr Sakthivel welcomed the steps taken by the government under the able and dynamic leadership of Prime Minister, Narendra Modi and the Union Finance Minister and the Union commerce & industry and textiles minister for showing confidence and trust on the exporters.

Echoing his view, Sandeep Modi, secretary, Federation of Pharma and Allied Product Merchant Exporters (FPME) said “Container shortage and high shipping freights are impacting domestic exporters and both these matters need attention of the government as we are targeting US$ 29 billion pharmaceutical exports in the current financial year.”

Exports of drugs and pharmaceuticals during the month of October have declined by 0.91 per cent at US$ 2060.09 million as compared to US$ 2078.92 million during the same month of last year.

Earlier Indian Drug Manufacturers’ Association (IDMA) had sought the intervention of the Union commerce ministry to address the issue of container shortage faced by the pharmaceutical exporters since April 2020.

Reference:
http://www.ingredientssouthasia.com/News/fieo-urges-govt-to-provide-freight-support-to-all-exports-including-pharmaceuticals-till-march-2022

More News
Containers pile up in Shanghai port on China’s COVID lockdowns
News · 02/05/2022

The strictest COVID -19 lockdown in China since the pandemic began has resulted in container goods sitting at Shanghai’s port for nearly two weeks.

READ MORE
Could cyber-physical watermarks be the key to pill-level traceability?
News · 01/04/2022

New anti-counterfeit technology, called a cyber-physical watermark, leverages edible fluorescent silk to identify medications.

READ MORE
World economy faces supply hit as China battles Covid
News · 01/04/2022

The global economy — already struggling with war in Ukraine and the stagflation risks it’s fanning — is bracing for greater disruption as China scrambles to contain its worst outbreak of Covid-19 since the pandemic began.

READ MORE
Impact of Oil hitting a seven-year high on world economy
News · 02/03/2022

Oil prices surged past $100 (£74) a barrel to hit their highest level for more than seven years after Russia launched an invasion of Ukraine.

READ MORE
What’s at Stake for the Global Economy as Conflict Looms in Ukraine?
News · 02/03/2022

The Russian invasion of Ukraine is already dealing a blow to financial markets and the worldwide economy. Global supply chains and growth had been broadly recovering from the pandemic, but now all that’s in doubt, given the stricter sanctions and other punitive measures against Russia that are in the offing.

READ MORE
2022 | How the pharma industry is shaping up for the future
News · 17/01/2022

Given the evolving on-ground situation and newer variant-led infections, the pandemic is far from over. In such a scenario, for businesses to stay relevant, we will need to be flexible and more adaptable to the changes that need to be embraced to keep core business growth drivers resilient.

READ MORE
2022 | Chemical & Renewable Energy Industry Outlook
News · 06/12/2021

As the chemical industry moves into 2022, strong demand for both commodity and specialty chemicals should keep prices robust throughout the year. The industry could face margin pressures amid raw material cost inflation, which will likely remain high through the first half of 2022.

READ MORE
China’s strategic power cuts & “green” Winter Olympics 2022
News · 05/12/2021

Blackouts and power cuts in the world’s second-largest economy have drawn attention to fuel supply problems that could complicate the country’s pandemic recovery.

READ MORE
World’s First Pig Kidney Transplant Into Human Successfully Completed
News · 02/11/2021

Science keeps winning! Scientists recently transplanted a pig’s kidney into a human being without immediate rejection by the immune system.

READ MORE