The government recently said it has directed the ECGC to maintain a moratorium on insurance rates for Indian exporters in the wake of the Red Sea crisis. State-owned ECGC is an export promotion organisation, seeking to improve the competitiveness of Indian exports by providing them with credit insurance covers.
Minister of State for Commerce and Industry Anupriya Patel said that the ECGC continues to provide insurance coverage to exporters.
She said that the corporation has not refused cover for export shipments routed through the Red Sea and the credit risk cover is being provided based on the risk assessment and creditworthiness of overseas buyers and terms of payment.
“The government has directed Export Credit Guarantee Corporation Ltd. to maintain a moratorium on rates of insurance for the Indian exporters,” Patel said in a written reply to the Lok Sabha.
She said that some increase in the freight cost has been reported by the industry.
Replying to a separate question, Patel said that the fruits destined for export to the US are irradiated in Indian irradiation facilities.
The United States Department of Agriculture (USDA) has approved four Indian Irradiation facilities for irradiation treatment.
