Covid-19 has led to exporters bleeding with upwards of 15-20 per cent of the orders getting cancelled and a major amount of funds being locked up, owing to non-payment of dues by large buyers in the US, Europe and West Asia, prompting them to seek a bailout from the government.
Food and farm products seemed to be the sole exception is robust demand for essential products. However, there are challenges in availability of containers and packaging material and machinery, along with certification required for products such as spices that are to be shipped to Europe.
According to Engineering Export Promotion Council president Ravi Sehga, if the lockdown doesn’t end soon, exporters could be staring at losing around 80 per cent of their orders. In a study, Gems & Jewellery Export Promotion Council has warned of an additional $2.7-billion impact in 2019-20 as shipments in March are projected to fall by 12 per cent compared to the average decline of 5.5 per cent seen during the previous months of the last year.
AEPC said close to Rs 15,000 crore (around $2 billion) worth of orders in the pipeline have been cancelled, while payments to the tune of Rs 10,000 crore are held up.
