The industry has to incur a large amount on logistics and the cost is one of the highest in the world, say industrialists.
They said the government, both at the Centre and state, should take measures to bring down the cost to aid the industry. “The logistics cost in India is the highest in the world,” said SC Ralhan, President, Ludhiana Hand Tools Association.
The logistics cost within the country is higher than the cost of sending goods from the port to the final destination. The cost of sending freight from Punjab to Mumbai is higher than the cost of sending it from Mumbai to Dubai. This issue must be addressed by the government. “Such cost is much lesser in other countries,” he said.
“The cost is indeed very high as the cost of sending material Chennai to Shanghai is about Rs1,600 per tonne, whereas the cost of sending freight from here to Chennai is Rs6,000 per tonne,” said Upkar Singh Ahuja, general secretary, CICU.
The government needs to re