SRI LANKA, Pakistan, and Bangladesh have presented a formidable challenge to Kerala-based vegetable and fruit exporters in the Gulf Cooperation Council (GCC) and EU markets, reports New Delhi's Indian Express.
There has been a 40 to 50 per cent decline in exports compared to the pre-Covid times.
The cause is from a steep hike in air freight charges and an 18 per cent Goods and Service Tax (GST) imposed by the Union government.
Vegetables and fruits from South India are primarily exported to GCC and EU countries.
The daily export of fruits from Kerala was 275 tonnes, a decline of 175 tonnes due to low demand.
'The air freight charge, which was in the range of INR35 (US$0.42) to INR50 per kg during the pre-Covid times, has doubled to INR75 to INR100.
Meanwhile, the Union government has imposed 18 per cent GST on air freight. This has forced us to hike prices of our products in the export market,' said All Kerala Exporters Association secretary M Abdurahiman.
'The same products are dumped in the global market at cheaper rates by Pakistan, Bangladesh, and sri Lanka. This has led to a decline in demand for our Agri products. An exporter who used to export 35 tonnes of vegetables a day have been forced to bring down the export volume to 15 tonnes.'
Said KB Exports managing director KB Rafee: 'Sri Lanka, Pakistan, Bangladesh, Vietnam, Indonesia, and the Philippines are providing vegetables and fruits at cheaper rates. There has been a 45 to 50 per cent per cent decline in our exports.
'We have been pleading with the ministries of commerce and finance to reduce the air freight charges and GST, which has led to a decline in foreign exchange income of the country. The drop in export volume has affected the farming community adversely,' said Mr Rafee.
SeaNews Turkey
There has been a 40 to 50 per cent decline in exports compared to the pre-Covid times.
The cause is from a steep hike in air freight charges and an 18 per cent Goods and Service Tax (GST) imposed by the Union government.
Vegetables and fruits from South India are primarily exported to GCC and EU countries.
The daily export of fruits from Kerala was 275 tonnes, a decline of 175 tonnes due to low demand.
'The air freight charge, which was in the range of INR35 (US$0.42) to INR50 per kg during the pre-Covid times, has doubled to INR75 to INR100.
Meanwhile, the Union government has imposed 18 per cent GST on air freight. This has forced us to hike prices of our products in the export market,' said All Kerala Exporters Association secretary M Abdurahiman.
'The same products are dumped in the global market at cheaper rates by Pakistan, Bangladesh, and sri Lanka. This has led to a decline in demand for our Agri products. An exporter who used to export 35 tonnes of vegetables a day have been forced to bring down the export volume to 15 tonnes.'
Said KB Exports managing director KB Rafee: 'Sri Lanka, Pakistan, Bangladesh, Vietnam, Indonesia, and the Philippines are providing vegetables and fruits at cheaper rates. There has been a 45 to 50 per cent per cent decline in our exports.
'We have been pleading with the ministries of commerce and finance to reduce the air freight charges and GST, which has led to a decline in foreign exchange income of the country. The drop in export volume has affected the farming community adversely,' said Mr Rafee.
SeaNews Turkey