Weekly sectoral stress indicator in the works: Commerce Secretary

Government plans weekly sectoral stress indicator to track trade and logistics disruptions as West Asia crisis raises input costs and supply chain concerns

The government will set up a ‘sectoral stress indicator’ and a structured monitoring mechanism to track export-import activity on a weekly basis, amid ongoing disruption in trade and logistics due to the West Asia conflict, according to Commerce Secretary Rajesh Agrawal.

 

A high-level stakeholder consultation took place on Thursday to address emerging logistics, packaging and shipping-related challenges impacting India’s trade and export ecosystem. Two important meetings were held — one was chaired by Commerce Secretary Rajesh Agrawal and another was co-chaired by Shipping Secretary Vijay Kumar.

 

During the meetings, industry flagged supply chain and logistics constraints, as well as rising input costs, as key risks to industries such as apparel, leather, optical fibre and medical devices. They also called for support in terms of continued availability of critical inputs such as LNG, helium and petrochemical derivatives, along with early goods and services tax (GST) refunds to improve liquidity.

 

 

Agrawal also emphasised the need for time-bound assessments of key packaging inputs, including mapping domestic production capacity and identifying import dependencies. Regular consultations with industry and Export Promotion Councils will continue to identify emerging challenges and facilitate timely interventions, he said. “The meeting chaired by the Commerce Secretary focused on challenges arising from disruptions in packaging materials and associated inputs. It was observed that the ongoing geopolitical developments can impact the availability and pricing of key petrochemical inputs such as polymers and resins, leading to increased costs for packaging materials across sectors,” the commerce department said in a statement on Friday, adding that the industry also highlighted the increase in prices of critical inputs, putting micro, small and medium enterprises (MSMEs) under stress.

 

The Shipping Secretary discussed issues including documentation processes, back-to-town and transit cargo matters, benefits by shipping lines, air freight costs, railway concessions, and bunker fuel availability, reflecting a proactive approach to resolving operational challenges. The Chairman, Central Board of Indirect Taxes and Customs (CBIC), who also attended the meeting, discussed various measures taken to streamline the clearance of cargo at ports.

 

“Stakeholders were apprised of the current operational position regarding vessel availability, cargo handling, and transshipment, with smooth cargo movement reported and no major constraints observed, indicating system resilience. Issues relating to hazardous cargo were discussed positively, with Customs agreeing to examine specific cases relating to destuffing to further streamline procedures,” the official statement said.

 

The meeting was also attended by port authorities, shipping agencies, Export Promotion Councils (EPCs), industry representatives and other stakeholders.