Bhopal: Exporters discuss bottlenecks, demand solution for pending cases

Bhopal (Madhya Pradesh): The Federation of Madhya Pradesh Chamber of Commerce and Industries met the exporters from across the state here on Saturday to address the operational difficulties they face in coordinating with the banks.

The exporters in the state have been raising concerns regarding the coordination with Reserve Bank of India, other banks and Directorate General of Foreign Trade (DGFT).

This has resulted in non-closure of pending cases, hence affecting their future businesses. President of federation, RS Goswami, gave a presentation on exportersí problems.

Buyers from countries with poor banking system make payments to Indian exporters in different currencies, either through personal accounts, or partner accounts, which are not recognised by banks. The banks do not issue BRC and do not close the case where the war-zone countries pay through interlinking countries like UAE and Jordan.

The billing and payment amount vary as the transaction fee is deducted and custom officers mark the order an anomaly. This leads to several bottlenecks for exporters despite a difference in payment as small as 10-100 US dollars.

The banks do not close, provide relief when the exporters have to courier free samples to the buyers despite high transfer charges.

Exporters have to face huge losses, the goods are damaged, lost due to change in rates, due to regulatory challenges or government restrictions.

Despite submission of documents, the exporters are made to pay penalty charges every time due to negligence of banks. Goswami said that the issues would be taken up with the government soon.

MoU with Dearn Insurance

Federation chair RS Goswami and Director of Dearn Insurance Nilesh Jain signed an MoU, according to which the latter will provide various types of insurance to the member industries of federation at reasonable rates. The member industries of FMCCI will provide discounts to members of the insurance company. Federation also launched revamped website and a brochure during the event.