Indian exporters, particularly micro, small and medium enterprises (MSMEs), are facing delays and rising freight costs due to a surge in Bangladeshi cargo being transhipped through the Delhi Air Cargo complex.
The Noida Apparel Export Cluster (NAEC), which MSMEs dominate, has requested a 25% quota in air cargo specifically for MSMEs with priority shipment. This comes after air freight costs quadrupled in the past two months.
The issue stems from a policy change in February 2023, which allowed Bangladesh to use the Delhi Airport for the transhipment of their exports to other countries, adding to the existing Kolkata Air Cargo complex option.
Exporters claim that cargo space at Delhi Airport is now congested with Bangladeshi shipments, prioritising their exports at the expense of Indian businesses. This situation is further exacerbated by the ongoing Red Sea crisis, which has caused a shift of cargo from sea to air routes, pushing up prices.
The Federation of Indian Export Organisations (FIEO) has raised concerns with the commerce department regarding the delays faced by MSME exports due to space constraints on busy air routes. The Apparel Export Promotion Council (AEPC) has even proposed a halt to the transhipment facility for Bangladesh.
Indian exporters argue that Bangladeshi textile businesses already benefit from government subsidies and preferential treatment under free trade agreements. They believe the current transhipment policy is putting them at a further disadvantage.
