Container shortage, high freight hit Panipat exporters

Mukesh Tandon

Tribune News Service

Panipat, October 13

The exorbitant global freight and shortage of containers have hit exporters of Panipat, globally known as the ‘textile hub’. This has resulted in export orders declining by 25-30%, which is likely to result in loss of business worth Rs 3,000-Rs 3,500 crore in the current fiscal. Panipat has an annual exports turnover of approximately Rs 15,000 crore.

Production cost escalates, orders shrink

The freight has risen exorbitantly and orders have shrunk. Besides the freight, rise in prices of petroleum products, cotton and polyester yarns, and chemicals has escalated the production cost. —Lalit Goyal, president, Panipat exporters’ assn

The handloom products such as blankets, bed sheets, cushions, among others, are exported across the world from Panipat and as many as 450 export units are based here.

Vinod Dhamija, an exporter, said, “Exporters had to face a tough time this year. They have orders in hand but the skyrocketing freight has hit the business. Earlier, the freight for Japan was $200-$300, but now it has risen to $5,000 while the freight to European countries has increased to $7,500 from $1,000 earlier. The freight for the US has increased to $12,000 from $3,000 earlier.”

Lalit Goyal, president, Panipat Exporters’ Association, said: “The freight has risen exorbitantly and the orders have declined. Besides the high freight, rise in prices of petroleum products, cotton and polyester yarns, and chemicals has escalated the production cost and the exporters are unable to execute the orders.”

He said due to the shortage of containers, the exporters were unable to send consignments and they were facing storage problem besides financial crunch.