Kakinada’s business faces a sharp fall as the port fails to compete with global rice prices as per the market standards. M Satyanarayana, Vice Chairman, FFFAI and President, Kakinada Custom Brokers Association, shares how he will be guiding the association’s members in all aspects relating to anchorage port, deep water port and customs or GST.
Could you please give an overview of the prevailing business scenario in and around Kakinada pertaining to customs broking and freight forwarding?
Kakinada’s prevailing business is reduced from previous years due to international recession and export price disparity for customs brokers. When exports are reduced, naturally customs brokers business will also be reduced, whereas there were many other reasons due to which imports were reduced. We have to face the bad weather due to reduced exports and imports. Kakinada Port is not much exposed to freight forwarding, but in future the customs brokers will take part in it.
Are you facing any challenges specific to your region?
Kakinada port is basically based on agri exports of rice, maize etc. Now maize has a high domestic price compared to global prices, similarly, rice also has such disparity and faces much competition, thereby global rice prices are less and do not match Indian markets. Hence, exporters are unable to procure rice to compete with global market. However, the government has provided farmers procuring paddy with minimum support price.
You have recently been elected as Vice Chairman, FFFAI. Could you please elaborate on your added responsibilities for your region as well as for the apex body at the national level?
As the Vice Chairman of FFFAI, my responsibility has been increased to fulfill the expectations of 28 locations / associations. From my association, I was the first person elected as Vice Chairman, and thanks to all EC members of FFFAI for giving me the opportunity to serve the national body, FFFAI. I will take forward the ideals of our Chairman AV Vijaykumar and other office bearers to the members of the association.