Centre Maintains Multi-Ministry Response to Support Exporters Amid Hormuz Disruptions

Why It Matters

The actions safeguard Indian export continuity, curb cost inflation and provide critical support to MSME exporters facing heightened war‑risk premiums and logistical bottlenecks.

Key Takeaways

• Back to Town lets exporters return cargo without filed manifests
• JNPT waives storage, dwell, and reefer charges for stranded containers
• RELIEF scheme provides up to 100% risk cover and 50% freight reimbursement
• Export obligation timelines extended to Aug 2026 for Advance Authorisations
• Dedicated helpline and sub‑group resolve perishable cargo exporter issues

Pulse Analysis

The recent flare‑up in the Hormuz Strait has sent ripples through global shipping lanes, inflating war‑risk premiums and causing containers to pile up at Indian ports such as Jawaharlal Nehr​u, Mundra and Kandla. Exporters, especially micro, small and medium enterprises, faced sudden spikes in insurance costs and delays that threatened supply‑chain reliability. In response, the Indian government mobilised several agencies to mitigate the shock, signalling a rare level of inter‑departmental coordination aimed at preserving trade flows.

Key interventions include the Central Board of Indirect Taxes and Customs’ “Back to Town” procedure, which allows exporters to return cargo without filing Export General Manifests, and waivers on storage, dwell‑time and reefer plug‑in fees at JNPT for stranded containers. The Directorate General of Shipping urged shipping lines to maintain transparent transaction costs, while the Department of Financial Services highlighted soaring war‑risk premiums. Most notably, the DGFT’s RELIEF scheme, launched under the Export Promotion Mission, offers up to 100% risk cover for existing ECGC‑insured shipments and up to 95% for new exports, plus a 50% reimbursement of additional freight and insurance expenses, capped at roughly $60,000 per Import‑Export Code.

For the broader economy, these measures cushion MSMEs against cost overruns and keep Indian goods competitive in overseas markets. The extension of export‑obligation timelines to August 2026 provides breathing room for firms navigating the current volatility. Moreover, the dedicated exporter helpline and a specialised sub‑group for perishable cargo ensure rapid issue resolution, reinforcing confidence among traders and investors. By addressing both immediate logistical hurdles and longer‑term risk exposure, India aims to sustain its export momentum despite geopolitical headwinds.