Biz chamber seeks RBI relief for exporters hit by West Asia disruptions

Kolkata: The Bharat Chamber of Commerce (BCC) wrote to RBI Governor Sanjay Malhotra, urging supportive banking measures for exporters reeling under disruptions in global logistics and shipping routes caused by ongoing tensions in West Asia.

In a letter on Monday, it said West Asia serves not only as a key destination for Indian exports but also as a critical transhipment hub for shipments bound for Europe and Africa.

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"The ongoing situation has led to diversion of shipping routes, port congestion, higher freight and insurance costs, and extended transit periods, straining working capital cycles and liquidity positions of exporters," it said.

The BCC urged RBI to encourage banks to adopt a supportive credit approach by enhancing working capital limits, providing ad-hoc credit facilities, and extending the tenure of pre-shipment and post-shipment export credit.

Greater flexibility in rollover of packing credit and extension of due dates for export bills was also sought.

It also requested extension of the moratorium on loan repayments to cover the first and second quarters of 2026 for export sectors facing logistics disruptions.

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It further sought regulatory relief to protect exporters from penal interest and loss of benefits under the Interest Equalisation Scheme (IES) where payment delays arise from shipping disruptions beyond their control.

On transit period norms, the BCC requested that the permissible transit period for usance export bills be extended from "normal transit period plus 25 days" to "normal transit period plus 60 days", particularly to bring uniformity for MSME exporters.

It also called for greater clarity and flexibility in bill discounting and negotiation facilities to ensure uninterrupted export financing amid uncertain shipment timelines.

BCC president Naresh Pachisia said exporters dealing in perishable and seasonal fashion products face acute vulnerability, as shipment delays could lead to loss of cargo value if seasonal market windows are missed.