Shipments on hold due to Ukraine crisis, exporters in Punjab fear losses
Vijay C Roy
Chandigarh, February 24
Exporters in Punjab are worried over the possible impact on their shipments and fears delay in payment amid the Russia-Ukraine conflict. The exporters are in wait and watch mode on dispatching fresh orders to the two nations and some of the Commonwealth countries.
Punjab-based manufacturer’s exports plastic, rubber, garments, hosiery, fertilisers, agriculture implements, scaffolding and hand tools to Russia and Ukraine.
According SC Ralhan, president, Ludhiana Hand Tools Association, the conflict will have a cascading impact on the hand tools’ exports not only to these two countries but other countries as well.
The quantum of impact on trade would depend on the duration of the war, which would affect both movements of goods and payments, said another exporter. The current crisis would affect the country’s exports as the West is imposing sanctions on Russia.
Russia is India’s 25th largest trading partner, with exports of $2.5 billion and imports of $6.9 billion in the first nine months of FY2022. While the bilateral trade with Ukraine stands at $2.3 billion so far this fiscal.
The ripples of the war are already being felt in India. For example, an apparel shipment bound to France has been asked by the buyer to put on hold as there is uncertainty in the air. “In the morning, we were intimated by our buyers to put the shipment on hold amid uncertainty. In a day or two it will be clear that how many consignments were either put on hold or cancelled,” said Harish Dua, MD of KG Exports.
Exporters also fear that there is looming prospect that it could be impacted if wider sanctions on Russia are announced. Amid the conflict, All Industries & Trade Forum has requested the Prime Minister to take care of the financial interests of the Industries trading with Russia & Ukraine.
“Due to the war, exporters may face delay in payments of goods supplied or already in transit. Those who have released the Letter of Credit may face losses due to delay,” said Badish Jindal.
Manufacturers likely to be hit
Punjab-based manufacturer’s exports plastic, rubber, garments, hosiery, fertilisers, agriculture implements, scaffolding and hand tools to Russia and Ukraine, which is likely to be impacted due to the conflict
Centre urged to announce relief
- All Industries & Trade Forum has requested the Prime Minister to take care of the financial interests of the industries trading with Russia & Ukraine
- The forum has requested the Centre to compensate them by allowing excess credit from banks equal to delayed payment against export to these countries
