Fieo Weighing Warehouse Facility In Latin America

The Federation of Indian Export Organisations (FIEO) is actively considering setting up a warehouse facility in a Latin American (LatAm) country, in a bid to give a boost to exports to that continent.

The facility will be similar to the ones set up a couple of years ago in Dubai and Rotterdam.

The market access initiative (MAI) of the Government of India is expected to come in handy for setting up this warehouse, Ranjit Dhall, director general (DG) of the FIEO, said in a video conference between the Federation's four main offices in the country -- Mumbai, Kolkata, Delhi and Chennai. The conference was organised as part of the FIEO's "Focus : Latin American Countries (LAC) Programme" for exporters to that region.

 

The warehouse in Latin America, like the ones in Rotterdam and Dubai, will be operated by private parties on behalf of the FIEO. As part of the MAI, the Centre will provide 75 per cent of the rentals for the warehouse in the first year, 50 per cent in the second year and 25 per cent in the third year. From the fourth year onwards the FIEO will bear the charges.

According to exporters, Mexico is likely to be the place where the warehouse could be set up as Indian exporters can have easy access to both North and South America from that country. They pointed out that setting up a similar warehouse in Africa would also be advantageous. "Having warehouses at strategic locations across the world will give a leg up to Indian exports," the exporters pointed out.

An exporter raised the issue of delay of almost three-months in obtaining visas to some LatAm countries. "If it takes 3 months to get a visa issued, what business can we do?" an official of Tata International wondered.

To this query, Amitava Tripathi, additional secretary, ministry of external affairs, said the ministry was in regular parleys with the missions of these countries in this regard. He suggested that exporters to LatAm countries develop contacts with the commercial officers at the embassies so that procedures relating to visas could be expedited.