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Essential food: Importers’ struggle to release goods continues

02 Apr 2022

 
  • 500-600 containers still held in port
  • Importers predict limited shortages 
  By Maneesha Dullewe Bureaucratic bottlenecks and delays in completing required formalities are preventing some importers from securing the release of essential food containers, despite the facilities provided through the $ 1 billion line of credit from India. Following the Government’s agreement with India for a $ 1 billion line of credit to import food, medicines, and other essential items, Trade Minister Dr. Bandula Gunawardena stated that he had given instructions to release Indian imported goods stuck at the port due to the forex crisis. Speaking to The Sunday Morning, Essential Food Commodities Importers’ and Traders’ Association (EFCITA) Spokesperson Nihal Seneviratne said: “There were about 2,000-3,000 containers stuck at the port for about two to three months due to the dollar shortage. We therefore made a request for the release of the Indian goods from among these, under the Indian credit line. The Trade Ministry and the Finance Ministry willingly agreed to this.” However, according to the Spokesperson, certain suppliers who had already loaded and dispatched containers were running into difficulties releasing their containers due to procedural formalities, as they had processed the initial agreement in US Dollars with their respective banks.  “However, we have taken steps to release the containers from the suppliers who face no such issues,” he asserted, adding: “There are approximately 500-600 of these old containers still left to be released. These will also likely be released in the coming days somehow.” Seneviratne noted that importers were taking steps to get these containers released despite having to bear significant losses as they had to pay high demurrage costs on top of the costs incurred by the rupee depreciation, since these containers had been stuck at port for over two months. “We are also in conversation with the Government regarding this issue almost daily, but what can be done if it also has no solution?” he asked. When asked if these issues with essential commodity imports would affect supply availability for the upcoming festive season, Seneviratne said that a shortage was unlikely: “While prices of commodities have increased and there might be shortages of items such as milk powder, there are no shortages of other commodities so far.”  However, despite not predicting any widespread shortages, he added that they lacked a surplus of commodities, as the available amount was only just enough, due to the dollar shortage and the suppliers being unwilling to send goods. As such, these were times of extreme hardship for importers, he stressed. Attempts to contact Trade Minister Dr. Bandula Gunawardena and the Secretary to the Ministry of Trade for further comment proved futile.  

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