West Asia Crisis: Commerce dept meets stakeholders to assess, ease trade disruptions

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By news.saerio.com


The Apparel Exporters Promotion Council (AEPC) wrote to the Civil Aviation Secretary seeking waiver of demurrage charges on export cargo due to flight disruptions

The Apparel Exporters Promotion Council (AEPC) wrote to the Civil Aviation Secretary seeking waiver of demurrage charges on export cargo due to flight disruptions
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REUTERS/Amr Alfiky

The Commerce Department held an urgent stakeholder consultation on Monday to assess the disruptions triggered by the escalating Iran crisis and the broader West Asian conflict and its impact on India’s exports and imports.

Stakeholders discussed mechanisms for facilitation of time-sensitive export segments such as perishables, pharmaceuticals, and high-value manufactured exports in the meeting chaired by Special Secretary Suchindra Misra and DGFT Lav Agarwal. It was attended by exporters from various sectors and representatives from key ministries and departments, including financial services, petroleum & Natural Gas and Ports, Shipping & Waterway.

Officials from the Central Board of Indirect Taxes & Customs and the RBI, as well as some logistics partners, were also present, per a statement issued by the Commerce Department.

“Stakeholders presented an assessment of the evolving operational environment, including routing and transit-time changes, vessel scheduling adjustments, container/equipment availability, freight and insurance cost trends, and implications for time-sensitive exports. The discussions covered the need to maintain predictability in cargo movement, minimise avoidable delays, and ensure seamless documentation and payment processes for exporters and importers,” the statement noted.

Discussions focussed on the fallout of the crisis, such as surging freight costs and insurance premiums, and the logistical challenges of rerouting cargo away from the Strait of Hormuz.

“Considering the narrow margins under which textile and apparel exporters operate, any escalation in the cost of logistics and insurance due to the West Asia scenario puts them in a very tight spot, affecting their ability to meet contractual obligations besides significantly raising operating costs,” said Ashwin Chandran, Chairperson, Confederation of Indian Textile Industry.

Seeking cover

The Apparel Exporters Promotion Council (AEPC) wrote to the Civil Aviation Secretary seeking waiver of demurrage charges on export cargo due to flight disruptions arising from the ongoing crisis.

“The prevailing situation has significantly disrupted international flight operations, resulting in route restrictions, airspace closures, flight diversions, schedule irregularities, and operational constraints at certain overseas airports…As a result, export consignments are currently stranded at multiple airport cargo terminals across India. The delays are solely attributable to external and unforeseen factors beyond the control of exporters, customs brokers, freight forwarders, or air cargo agents,” A Sakthivel, Chairman AEPC, wrote in the letter, per a statement.

In the meeting, government officials assured exporters that it was the country’s priority to ensure continuity of EXIM logistics and mitigate any disruptions to India’s trade flows. It was emphasised that the approach will remain facilitative and coordinated, with a focus on maintaining supply chain resilience, protecting the interests of exporters — particularly MSMEs — with a view that essential imports required for domestic production and consumption are not adversely affected.

Published on March 2, 2026



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