The Synthetic and Rayon Textiles Export Promotion Council has called on the government for increased duty drawbacks, higher rebates of State and Central taxes and levies (RoSCTL), and elevated Remission of Duties or Taxes on Export Products (RoDTEP) rates to navigate the challenges posed by the ongoing Red Sea crisis.

The textile industry is grappling with severe disruptions in exports due to the recent attacks on cargo ships passing through the Red Sea. This crisis has resulted in shipment delays and escalated costs for the textile exporters.

The Red Sea, a critical trade route connecting Europe and Asia through the Suez Canal, has witnessed attacks on cargo ships by militants in recent days. To avoid these threats, ships are taking a 6,000-nautical-mile detour around Africa, leading to an additional 15 days of transit time. This has triggered a substantial surge in freight rates and insurance premiums.

Bhadresh Dodhia, Chairman of the Synthetic and Rayon Textiles Export Promotion Council, expressed serious concern about the situation. Freight rates from India to European ports have already surged by 40%, with the possibility of further increases in the near future. The rising shipping costs pose an additional burden on textile and clothing exporters.

Dodhia urged the government to extend support to the industry, helping exporters cope with the crisis and sustain their operations. The majority of textile shipments pass through the Suez Canal, making the current situation a critical challenge for the industry.

Highlighting that the crisis could disrupt the global supply chain and negatively impact the world economy if not swiftly contained, Dodhia stressed the need for prompt government intervention to mitigate the challenges faced by the textile and clothing exporters.