Lanka crisis: Firozabad glass industry in Uttar Pradesh awaits payment of Rs 5-croe, exports suspended | Agra News
AGRA: Repercussions of economic crisis in Sri Lanka have reached ‘India’s glass city’, says UP firozabad. Glass Exporters told TOI that private companies in the crisis-hit country defaulted on their payment obligations worth around Rs 5 crore for goods supplied in March and April.
Meanwhile, unable to export to the island nation for the past 45 days, manufacturers said orders worth Rs 50 crore were ‘on hold’ while those worth Rs 10 crore had been cancelled.
In the financial year 2021-22 (FY22), the city of UP exported glassware worth Rs 100 crore to the neighboring country, said Mukesh Kumar Bansal, glass exporter from Firozabad and Treasurer of the Indian Glass Manufacturers Federation (AIGMF).
Losses will increase if unrest in Lanka continues: Firozabad glass exporters
This number was significantly higher than in the past as the market benefited from the disruptions in China due to Covid lockdowns,” he added. Commonly exported items included kitchen utensils, toys, figurines, and lighting equipment. Firozabad-made chandeliers were in high demand in Sri Sales peaked between June and November (Diwali season), experts said.
AIGMF’s Bansal said, “We are concerned about developments in Sri Lanka. About 50% of our pending orders have been fulfilled. If the economic and political turmoil does not end soon, we will suffer significant losses. Another senior member of a group of UP glass manufacturers, Deepak Gupta, said: “Glass exporters are confused. We don’t know whether to continue or stop production for backorders. have been cancelled. However, the government authorities are optimistic and have advised us to wait another 15 days.”
Some exporters pointed out that the Reserve Bank of India last week allowed trade settlements between India and Sri Lanka in rupees. “It was a major relief. The importers assured us that they would settle the pending duties very soon, now that the process of exchanging dollars is no more,” Gupta said.
The Firozabad Glass Industry has an estimated annual turnover of Rs 10,000 crore. It employs over 6 lakh people locally. In FY22, India’s merchandise exports to Sri Lanka amounted to $5.8 billion, while imports amounted to $1 billion. The countries share a free trade agreement, which came into force in 2000. Apart from glassware, India’s exports to Sri Lanka included engineering goods, chemicals, iron and steel , agricultural products and mineral fuels, among others.