India's government has warned that congestion may build up at key ports including Mundra and Nhava Sheva within four to five days as disruptions linked to the West Asia crisis begin to affect cargo movement.
Officials said the situation could slow shipments headed to major export markets such as the United States and the European Union. The concerns emerged during a March 6 meeting of an inter-ministerial group that reviewed the impact of the crisis on trade flows, logistics and energy supplies. The discussions focused on port operations, container availability and possible steps to support exporters if disruptions continue.
Officials from the Ministry of External Affairs, Department of Financial Services, the Central Board of Indirect Taxes and Customs, the Food Safety and Standards Authority of India, the Directorate General of Foreign Trade, the Department for Promotion of Industry and Internal Trade and the Reserve Bank of India attended the meeting along with exporters, according to people familiar with the discussions.
Authorities said congestion at ports could disrupt cargo movement if shipping schedules and container circulation remain affected.
Officials also discussed issues related to “Back to Town” containers, which are affecting the movement of agricultural shipments at ports. The Department for Promotion of Industry and Internal Trade is in talks with stakeholders on the matter, people aware of the discussions said.
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The Central Board of Indirect Taxes and Customs is expected to meet the Food Safety and Standards Authority of India to review the status of agricultural shipments, particularly in cases where vessels may return or consignments face delays.
Officials from the Petroleum Ministry told the group that crude oil imports remain largely unaffected so far. However, supplies of liquefied natural gas and liquefied petroleum gas could face pressure if the situation escalates.
Authorities are examining options including diversifying energy supplies and securing long-term procurement contracts.
The inter-ministerial group also suggested that the Reserve Bank of India and banks could consider extending payment timelines for exporters, while the Export Credit Guarantee Corporation may examine temporary relaxations.
Jewellery exporters have also sought interest relief from the government.
The Department for Promotion of Industry and Internal Trade is scheduled to convene a special meeting of the Service Improvement Group on March 9 to assess developments and review possible responses.
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