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rates eases as operators pass on cut on : Crisil.

Freight rates across the country eased in June after transport operators passed on the benefits of excise duty cut on fuel even though various sectors saw a decline in fleet utilisation during the month, a Crisil report said on Thursday. Crisil's pan-India freight index CRISFrex indicates that freight rates have dropped month-on-month with free cash flow or pre-equated monthly installment going back to April 2022 level, largely due to a drop in fuel prices, CRSIL said.

CRISFrex captures the changes in freight rates on a sequential basis. Besides, it also the Free Cash Flows (FCF) of transporters on an ongoing basis.

Higher FCF would typically support demand for commercial vehicles.

An initiative by EPIC India in association with ET Energy world, to create a
knowledgeable platform to discuss evidence-driven and innovative solutions
to mitigate India's environmental challenges.

The transporters had in May partially passed on the benefit of lower fuel prices after minister Nirmala Sitharaman on May 21 announced a cut in excise duty on petrol by a record Rs 8 per litre and that on diesel by Rs 6, helping the oil marketing companies lower the prices of the two automobile fuels.

applications (largely coal) saw a flattish movement in freight rates over the past month, it said.

On the other hand, freight rates for products, , , , and saw a mid-single-digit decline, as per Crisil.

"However, fleet utilisation also dropped (in June), which took place at a faster rate in agri products, auto carriers, FMCG/FMCD, petroleum and . The remaining segments such as market load, parcel/loose goods, mining (largely coal) and container saw slower decline in utilisation," Crisil said in the report.

'Invest in & sector in '

State minister on Friday said has the potential to become the best
destination for investment in supply chain and logistics sector.

Speaking at 'Supply Chain Management & Logistics Summit 2022' organized by the Economic Times in , he said, "Bihar is well connected with its neighbouring states and the total market size, including its neighbouring states, is 55 crore people. We also have well developed infrastructure, huge water resources and cheap manpower. All these provide immense potential to the companies of this sector to invest in Bihar."

The event was attended by several honchos of this sector, including , managing director (South-Asia) Moller-Maersk ( - ), Abhinav Singh, director, , Prakash Gaur, CEO, Logistics Management Limited and Nanduri Srinivas, director, Corporation of India Limited.

India's supply chain and logistics sector is the largest in the world and it is a matter of happiness that the growth of this sector is also the highest at present. Bihar is also a part of this and I represent this state. We are, therefore, preparing ourselves for a giant leap in this sector,"
Shahnawaz said. He said Bihar is moving towards a new era of at a fast pace. "The role of the supply chain and logistics sector is necessary for the creation of a favourable industrial environment in Bihar," he said.

face
potential of Rs 1,200
crore.

Garment exporters are staring at a potential loss of Rs 1,200 crore due to the
new conditions imposed in the Rebate of State and Central Taxes and Levies
( ) scheme.

The scheme offers against the and levies already paid by
exporters on the inputs. Now, this rebate has been converted into scrips that are tradeable. Exporters can sell the scrips to importers, who in turn can use the instrument as an alternative to cash to pay import duty. The scrips trade at a discount, which has now gone up to 20% from 3% in December, insiders said, putting pressure on the margins of garment exporters at a time when they are facing challenges on account of rising prices.

"This discounting of scrips benefits , who are taking undue
advantage at the cost of exporters," said Vijay Jindal, a member of the Apparel Export Promotion Council (AEPC) and president of the Garment Exporters & Manufacturers Association (GEMA).

Garment exports at $16 billion contribute 36% to the country's annual of $44 billion. According to estimates, reimbursement under the RoSCTL scheme is equal to around 5% of the apparel exports, or roughly Rs 6,000 crore. At a broad level, a discount of 20% on this would mean a direct hit of around Rs 1,200 crore for the exporters.

"The textile industry wants the to restart cash reimbursement instead of these tradeable scrips, as these scrips are trading at a 20%
discount," Jindal said. "This is resulting in a substantial cash transfer from exporters to importers and is helping the importers."

The textile industry employs around 45 million workers and is expected to be
worth more than $209 billion by 2029. But if this anomaly continues, then the industry will rapidly lose its global competitiveness to countries like and , where the labour cost is very low, say industry insiders.

Even though the scheme was launched with the intention of making India's textile industry competitive and bolstering exports, because of the discount
in the market, it is acting against the government's intention of helping the
exporters and is instead benefitting importers, they said. It also defeats the
purpose of the government's stated policy of ' ' for the , they added.

"At present, demand for such scrips is very less as exporters are finding it difficult to find enough importers who can buy the scrips," said Harish Ahuja, an executive member of the and management committee member of the .