Freight Subsidy Demanded by Industrialists in MP

Industrialists across Madhya Pradesh have recently raised their voices against the aggressively increasing cost of logistics that is killing the competitive edge of products.   

Saurabh Kalani, Flexituff Group promoter, said, “We are poised correctly for good growth given a chance. There is a lot of potentials provided we get better connectivity and improved logistics. Being a landlocked state, the logistic costs come much higher than other states and this makes us outpriced in the market.”

Taizoon Hyder Tyebkhan, an international buyer from Malaysia, said, “I am into the hardware business. I came to attend the event to meet suppliers of some hardware parts but unfortunately could not get any deals locked because of the price factor. Prices of products are very high in MP and do not suit my requirement.”

Santosh Sarangi, Directorate General of Foreign Trade (DGFT) additional secretary said, “MP needs to address the infrastructure and logistics gap. There are some key export clusters where the transportation facilities and connectivity issues still exist and those need to be addressed.” He further added, “After Gujarat, MP possesses the capacity to be a major player in spices and this is possible with a little bit of facilitation.”

A few of the other industry leaders commented on the same, saying, “In order to facilitate exports and cut down logistics cost the state should develop dry ports, especially in the eastern part of the state and add to the train network.” FIEO, the export promotion body in place, has also requested the government of Madhya Pradesh to give freight subsidies, as previously followed in Uttar Pradesh and Chhattisgarh.

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