Friday, September 25, 2015

Chennai Port no more an apple for trade due to DGFT clamp

Imported apples in Southern states to cost more
C Shivakumar
Chennai:
Imported apples in Tamil Nadu will cost more following the notification by director general of foreign trade (DGFT) to ban import of apples from Chennai Port.
A Chennai Port official told Express that the move would affect the revenue of Chennai Port as well as large network of wholesale and retail sales involving the fruit business.
Interestingly, Chennai Port imports 5,000 cartons of apple every year and it is the second largest port when compared to the volumes of containers.
“We will be taking up the issue through Shipping Ministry with Union Commerce Ministry,” said the official.
Sources said the Union Commerce Ministry took the decision to protect the domestic apple trade. However, port sources said that the domestic apple trade is seasonal while the import of apples through Chennai Port happens regularly. “There is no reason why Commerce Ministry resorted to such a decision,” said the official.
Interestingly, the notification of DGFT to import apples into India only through Nhava Sheva Port has also irked apple importers in Chennai Port.
Chozha Naachiar Rajasekar, president of Tamil Chamber of Commerce has urged Commerce Minister Nirmala Seetharaman to allow Chennai Port for import of apples through fresh DGFT notification or else it will involve huge freight amount in transporting the containers to southern states.
“The apples are imported in refrigerated containers from countries like US, Australia and Fuji Island. If the consignments are to be imported only at NhavaSheva, then the goods should be transported in refrigerated container or trucks to Chennai and other places involving huge freight amount pushing the price of apples and adding to food inflation, which is avoidable,” said Rajasekhar.
He said that apples are not grown in Tamil Nadu and it has to be procured from states like Himachal Pradesh and even there sufficient quantity is not available.
“There appears to be no public interest in sudden restriction of port of import and the move may result in cartelisation of the trade to the detriment of consumers and to prevent monopoly of particular port in the West coast of the country,” he stated.
He said the large network of wholesale and retail sales involving businesses and trade activities connected with fruit business will be affected

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