FIEO Urges RBI for Liquidity Support as Freight Costs Surge Amid West Asia Disruptions
by Priyanka Jadhav * Mumbai April 20, 2026:* The Federation of Indian Export Organisations (FIEO) has called on the Reserve Bank of India (RBI) to extend additional liquidity support to exporters, citing mounting working capital pressures due to sharp increases in freight costs and prolonged shipment timelines triggered by ongoing geopolitical disruptions in West Asia. According to FIEO, logistical challenges have significantly escalated transportation costs, particularly for shipments to the Middle East, where freight rates have surged by as much as 300–400 per cent. The disruption has also spilled over into air cargo, further straining exporters. Ajay Sahai, Director General and Chief Executive Officer, FIEO, noted that delays in shipping have materially impacted payment cycles and liquidity. “Earlier, shipments to the US would reach in around 50 days; now, they are taking up to 90 days. Consequently, payment cycles have stretched from 30–60 days to 90–120 days, increas...