Lockdown has resulted in 75pc drop in trade volumes in Chennai Ports, says report

C Shivakumar @ CHENNAI:
The lockdown has impacted nearly 75 per cent drop in trade volumes in the three ports across Chennai and electronic and automobile industries have been impacted the most because of imports from China, according to a report by Tamil Nadu Association of SEZ Infrastructure Developers (TASID).

According to TASID, storage facilities and warehouses are all full Inventory isn’t moving out due to industries shutting down, the report said that ports across India experienced 60 drop in volume by the middle of March.

The report also states that there is reduced demand for logistics because production across sectors has come down. Currently demand through Free Trade Zone is very low since majority of industries is hurt.

Stating that there are opportunities for domestic manufacturers to step in and fill the supply void as foreign companies are wanting to stop their manufacturing units in China, the report also stated that electronic and automobile industries have been impacted the most during lockdown because of imports from China.

The report also stated that  export performance by Export Oriented Units  was at its peak in 2016-17 However there is a decline in the performance for two consecutive years.

Stating that the present system of Special Economic Zone (SEZ) online doesn't facilitate exports since Domestic Tarrif Area (DTA) exporters supplying goods to SEZ units are unable to get their export entitlements without having to go through manual process, TASID said that payment of customs duty online should be made possible and approval and compliance process be made 100 digital by Integration of SEZ online with ICEGATE System, the e-commerce portal of Central Board of Indirect Taxes and Customs.

The report also states that Tamil Nadu tops the chart of operational SEZs with 75 per cent of its SEZs functioning without any hitch Tamil Nadu has 52 SEZs of which 39 are operational.