According to exporters in Kerala, there has been a 40-50% decline in exports to Sri Lanka, Pakistan and Bangladesh compared to the pre-Covid times. They point to the steep hike in air freight charges and the 18% GST imposed by the federal government.
Vegetables and fruits from South India are primarily exported to GCC and European countries and the customers are mostly Indians. Countries like Pakistan, Bangladesh and Sri Lanka are dumping their products in these countries while Indian exporters are not able to compete due to competitive pricing. According to industry sources, the daily export of fruits from Kerala which stood at 275 tons, has declined to 175 tons due to low demand.
All Kerala Exporters Association secretary M Abdurahiman: “The air freight charge which was in the range of Rs 35 to Rs 50 per kg during the pre-Covid times, has doubled to Rs 75 to Rs 100. Meanwhile, the Union government has imposed 18% GST on air freight. This has forced us to hike prices of our products in the export market."
"The same products are dumped in the global market at cheaper rates by Pakistan, Bangladesh and Sri Lanka. This has led to a decline in demand for our agri products. An exporter who used to export 35 tons of vegetables a day have been forced to bring down the export volume to 15 tons."
[ Rs 100 = €1.20 ]
Source: newindianexpress.com
