Apparel export body urges govt. to stop using Delhi airport as transhipment hub for Bangladesh exports

COIMBATORE Apparel exports face challenges as cargo from Bangladesh enters Delhi Air Cargo Complex, increasing costs and congestion.

Apparel exports, that slid 3.46 % year-on-year in January, are facing more challenges as 20-30 truckloads of cargo are entering the Delhi Air Cargo Complex every day from Bangladesh for transhipment to third countries.

According to Sudhir Sekhri, chairman of the Apparel Export Promotion Council (AEPC), the continuing Red Sea crisis had raised logistical costs for exporters while leading to a shift in the mode of shipping consignments from sea to air. Permitting Bangladeshi cargo transshipment from Delhi Air Cargo Terminal at this juncture had only increased logistical challenges and transportation costs for Indian apparel exporters.

Almost 20-30 loaded trucks from Bangladesh arrive in New Delhi every day slowing down cargo movement and the airlines were taking undue advantage of this, he alleged. It had led to a steep rise in air-freight rates, delayed handling and processing of export cargo and congestion at the cargo terminal.

The AEPC, hence, requested the Central Board of Indirect Taxes and Customs CBIC) to suspend implementation of a circular dated February 7, 2023 permitting the transshipment of Bangladesh export cargo to third countries via Delhi Air Cargo complex.

Earlier, such transhipment of Bangladesh export cargo was allowed only via Kolkata Air Cargo Complex, he said.

Textile and apparel exports had contracted 2.29% year-on-year in January.