Punjab Exporters Reel Under War Impact, ATIU Seeks Urgent Govt Relief
April 4, 2026
ETT News / Ludhiana
The Association of Trade & Industrial Undertakings (ATIU) has approached the Ministry of Commerce seeking immediate financial relief for exporters struggling with cancelled orders and massive shipping surcharges triggered by the ongoing global war. ATIU President Pankaj Sharma convened an urgent meeting of the group’s Exporters Wing in Ludhiana this week to address the "pre-COVID" level of instability currently threatening the survival of the region’s engineering, hosiery, and garment sectors.
The crisis stems from severe maritime disruptions in the Strait of Hormuz, which have blocked primary trade routes to Dubai, Saudi Arabia, Qatar, and Iraq. Because shipping lines have diverted cargo to congested secondary ports or arbitrarily offloaded goods at distant hubs like Hong Kong and Chennai, local exporters are now facing "End of Voyage" notices that leave their shipments stranded.
Vijay Sharma, Head of the ATIU Export Unit, reported that the lack of customer remittances combined with a total absence of support from financial institutions has made it nearly impossible to sustain daily operations. He noted that shipping lines are now imposing arbitrary charges between USD 2,000 and USD 6,000 per container, placing an unviable financial burden on small and medium enterprises.
Industry leaders, including Rakesh Kapoor of Paramount Impex and Madhur Gupta of Madhur Impex, warned that buyers are already using these logistical delays as a reason to cancel existing orders. They expressed deep concern that the rising prices of raw materials within India, coupled with the instability of international shipping, will permanently damage long-term relationships with foreign buyers.
Adding to the urgency, Pranav Chadha of BAUM Tools and Indermohan Singh of Turbo Tools emphasized that the engineering sector is particularly vulnerable to these persistent disruptions. Singh warned that if the government does not intervene within the next few weeks, many industrial units in the region may be forced to shut down permanently due to the depletion of working capital and the loss of business momentum.
In response to these challenges, Pankaj Sharma confirmed that ATIU has formally submitted a memorandum to the Union Ministry of Commerce. The association is urging the government to implement immediate relief measures and policy interventions to safeguard the export sector from the prolonged uncertainty caused by the conflict.
Punjab Exporters Crisis Ludhiana Exporters ATIU Ludhiana War Impact On Exports Shipping Disruption India Exports Strait Of Hormuz Trade Route
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