Strike at Chennai Port holds Rs 5-crore apparel exports

Vijay Trivedi

Mumbai, May 22: APPAREL exporters find themselves in a piquant situation these days. Even as the export orders are rising, they are unable to fulfill them; all thanks to the port workers’ strike at Chennai Port.

Chennai Port workers have struck work since May 5, 2001. "Around 6,000 containers, which may be costing around Rs 3-4 crore, cleared by the customs authorities have been blocked at the port with a number of vessels waiting outside the port for berthing," says Confederation of Indian Apparel Exporters (CIAE) secretary JB Jain. The CIAE, representing around 3,500 garment exporters, has urged the Centre to take immediate steps to normalise the situation at the Chennai Port and save the exporters from losing out from the international market.

Jain says apparel exporters are worried about the cascading effect of the strike. "Most of the exporters have to enter into a contract with the importers for performance guarantee. For whatever reasons, if the exporters are unable to meet their commitments, exporters have to pay a penalty of 1 to 5 per cent of the contract value to the importers. The terms and conditions may varies with each importers." Also, for non-fulfillment of contractual obligations, the importers in European countries do not hesitate to blacklist the exporters, Mr Jain said. Add to this the delays in getting their bills of lading.