The Biz Reporter
The Kashmir Chamber of Commerce & Industry (KCCI) has welcomed the launch of the Logistics Interventions for Freight & Transport (LIFT) scheme under the Export Promotion Mission – NIRYAT DISHA by the Ministry of Commerce & Industry, Government of India, describing it as a significant step towards addressing the long-standing logistical challenges faced by exporters from Jammu & Kashmir.
In a statement issued here, KCCI said that the initiative is expected to provide much-needed support to exporters in Kashmir, operating from geographically remote and hinterland regions by helping reduce freight and logistics costs associated with exports. The scheme aims to mitigate the geographical disadvantages faced by exporters and improve their competitiveness in international markets.
The KCCI noted with satisfaction that Jammu & Kashmir has been included among the eligible regions under the scheme, making exporters from the Union Territory eligible to avail the benefits of freight cost reimbursement for exporting notified products. KCCI stated that the introduction of the scheme fulfils a long-pending demand of the Chamber, which had consistently raised the issue of high freight costs and logistical disadvantages faced by exporters from Jammu & Kashmir due to its landlocked geography and lack of direct access to seaports. Exporters from the Valley are often required to transport their goods to distant cargo terminals and ports, which significantly increases transportation costs and reduces their competitiveness in global markets.
The Chamber recalled that KCCI had repeatedly taken up the matter with the Ministry of Commerce & Industry and the Directorate General of Foreign Trade (DGFT) over the past several years. The issue was raised during various meetings and consultations with policymakers. The President of KCCI, Javid Ahmad Tenga had also personally submitted a memorandum to the Union Ministry of Commerce highlighting the urgent need for a freight assistance mechanism to support exporters from Jammu & Kashmir.
Welcoming the decision, KCCI appreciated the Ministry of Commerce & Industry and the DGFT for acknowledging the concerns of exporters and introducing the LIFT scheme aimed at supporting MSME exporters operating from geographically disadvantaged regions. Under the scheme, partial reimbursement of freight costs incurred by MSME exporters will be provided, helping offset the burden of high logistics expenses. Eligible exporters can receive reimbursement of up to 30 percent of the freight expenditure excluding applicable taxes, while the maximum financial assistance is capped at Rs 20 lakh per Importer-Exporter Code per financial year. The scheme applies to export shipments transported from MSME premises to Inland Container Depots, Container Freight Stations, seaports and Air Cargo Complexes and specifically targets exporters located in regions facing logistical disadvantages due to distance and connectivity challenges.
KCCI said the scheme will particularly benefit exporters dealing in traditional and high-value products such as walnuts, saffron, apples, pashmina shawls, carpets, handicrafts and spices which form the backbone of Kashmir’s export economy. The Chamber expressed hope that the scheme will help improve the competitiveness of exporters from Jammu & Kashmir, encourage greater participation of local exporters in international trade and contribute to the overall growth of the region’s export sector.
