'Transaction cost mars export business'

Various factors including the high transaction cost of export, no development of ports in hinterland, dip in the industrial sector are contributing to the de-growth of export in the nation, opined Federation of Indian Export Organisations (FIEO) Chairman Walter D’Souza.

Delivering introductory remarks at the exporters’ meet jointly organised by Karnataka Bank Ltd and FIEO at Karnataka Bank Conference hall on Wednesday, he said the export in India has seen a de-growth of 14 per cent while the import has seen the de-growth of 7.8 per cent. The very fact that the Indian exporters bear the transaction cost as high as 10 to 12 per cent as against 1 to 2 per cent in developed countries itself is one of the reasons for the de-growth of export, he opined.

Emphasising the government to take up a few measures to sustain the export growth in the nation, he said the export target policy of 2009-14 could be achieved only if the government takes up the initiative to reach the target.
“As a matter of fact, there has been colossal wastage of money in various government schemes which could be diverted to export industry,” he suggested.

Air cargo soon

Mangalore Customs Assistant Commissioner Krishna Kumar hinted at the much awaited Air Cargo complex at Mangalore Airport receiving Custom clearance in a near future. “The matter related to the Air Cargo complex is under process and we might have it shortly,” he said.

Mangalore Airport Director M R Vasudeva said that work related to the Air Cargo is under progress and the complex could be open for activities within a month of receiving the Custom clearance. The civil and electricity work for the Air Cargo complex has been completed, while the computer related work is in progress. “We have also requested for the installation of X-ray machines and we are hopeful of having them soon.”

Meanwhile, he asked the exporters present at the meet to brief about the types of export items that they are likely to handle through Air Cargo complex.

24X7 system
New Mangalore Port Trust officer Navaneet Kumar said that though the activity was very low at the port during last two months, the NMPT was successful in convincing Jindal Industries, which resulted in Jindal assuring of coal transaction worth 10 million tonnes through NMPT.

“A new concept of 24X7 work has started in the ports. The 24X7 concept will not only be in terms of operation but also in terms of documenting. The NMPT too might open itself for 24X7 system probably in another six months, which also requires the co-operation of banks,” he said.

Karnataka Bank Managing Director Jayaram Bhat inaugurated the meet. Karnataka Bank Chairman P Ananthakrishna was present.

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