Nhava Sheva port in a jam

Exporters fear Rs 800 cr loss.

The Nhava Sheva Port outside Mumbai is facing a problem of plenty. Exports have come to a standstill because of congestion at the country's largest port. Exporters are estimated to lose around Rs 800 crore a month because of delayed shipments.

Textile exporters are the worst hit by the congestion, while exporters of other bulk goods namely chemicals, pharmaceuticals, iron and steel, and petrochemicals are also suffering.

Port authorities were unavailable for comment. The port chairman's office said he was out for a meeting with state government officials.

Exporters have sought the intervention of the Union shipping, textiles and commerce ministries but have received no response so far.

The situation has been deteriorating every day, leading to a huge pile up. Textile exporters, especially those engaged in value-added products, are supposed to have the minimum lead time making them vulnerable to any disruption in shipping schedules. Lead time is the gap between bagging an order and its delivery.

A leading textile exporter said he was forced to send his consignment by air, which cost him 40 per cent of the value of the product. Shipping casually costs them 4 per cent of the product value.

Lalit P Desai, chairman, Cotton Textiles Export Promotion Council, told Business Standard exporters were facing cancellation of orders on account of non-delivery of goods.

"Unfortunately, the contestation has come at a time when the textiles exporters are bracing themselves to compete in the international market," he said.