Budget 2020: MSME exporters cry foul over ‘unfair’ charges; want FM Sitharaman to take this urgent step

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Updated: Jan 07, 2020 1:48 PM

Budget 2020 India: Currently, 50 per cent of Indian exports are contributed by MSMEs and out of close to 98 per cent Indian exporters, which are MSMEs, 83 per cent are micro-enterprises.

Budget 2020, union budget 2020 india, budget 2020 india, budget 2020-21Budget 2020-21: MSMEs also sought a minimum of 50 per cent of market development funds to be earmarked.

Union Budget 2020 India | Trade, Imports, Exports for MSMEs: Indian MSMEs have asked the Finance Minister Nirmala Sitharaman, as part of their budget suggestions, to appoint a regulator for logistics including land, rail, air, shipping and ports to establish clear rules for the same, bring transparency to the process along with setting up a grievance redressal mechanism for exporters and importers. The suggestion was part of the presentation shared by the MSME body Federation of Indian Micro and Small & Medium Enterprises (FISME) recently with Sitharaman in terms of the steps required to boost the MSME sector. Currently, 50 per cent of Indian exports are contributed by MSMEs, according to the 2019 annual report by the MSME Ministry.

“We would like to raise the issue of arbitrary and unfair charges levied by shipping lines on hapless Indian exporters and importers especially MSMEs,” said FISME. Often, such charges exceed the freight component itself even as for imports, shipping lines charge Rs 20,000-50,000 for handing over ‘delivery note’ needed for clearance of goods, the federation added.

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MSME minister Nitin Gadkari had said last year that MSME exports will be increased from 50 per cent share to 75 per cent. Out of close to 98 per cent Indian exporters, which are MSMEs, 83 per cent are micro-enterprises, according to research by the trade finance company for Indian exporters — Drip Capital.

Also, shipping lines reportedly don’t share the details of the charges beforehand and blackmail importers after the consignment arrives. MSMEs, consequently to save demurrage, acquiesce given the absence of a platform for them to file complaints against such excesses. MSMEs also sought a minimum 50 per cent of market development funds to be earmarked for them to boost exports along with timely GST refunds and live dashboards to track any delay. Last year In August, Sitharaman had said GST refunds should be paid to MSMEs within 60 days from the date of application.

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