Financial Crunch – Exporters Face Severe Pressure on Working Capital

Published

The maritime logjam caused by the Iran war has severely affected the payment cycle for Indian rice exporters. With goods stranded at ports and unable to reach buyers, the inward flow of payments has stopped, leading to an acute shortage of working capital. General Secretary Ajay Bhalotia highlighted that industrialists are struggling to manage their daily operational costs and factory overheads. The uncertainty surrounding shipping timelines is preventing banks from extending further credit, creating a high-pressure environment for both small and large-scale export houses.

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