Moradabad: By importing mentha oil, China was creating its own health and cosmetics products, but now it is going to be harder than ever to get mentha oil from India. China has been shifted from A1 category to A2 category for insurance payments. Exporters exporting mentha oil from Moradabad division to China may now be a bit discouraged as they will find it expensive to get their payment security cover when they ship goods to China.
The Export Credit Guarantee Corporation of India (ECGC) has now shifted China from the A1 to the A2 category. The ECGC, operated under the Union Ministry of Commerce, has taken this step in view of the increased risk on uncertain political situations and business in the wake of conflict and escalation in India-China relations. As a result, exporters who export goods to China will find its payment insurance policy 1.5 times more expensive than before.
In terms of payment insurance, China has been in the A1 category till now, like the US and many European countries, but, in view of increasing tensions in Indo-China, ECGC has decided to move China from A1 to A2 category.
Mukesh Kumar, manager of Moradabad branch of ECGC said that mentha oil is being exported to China from Moradabad division. More than fifty mentha exporters of the division will now have to pay a higher premium for payment cover when they export it to China. In view of political circumstances, there has been an uncertainty in getting payments from China’s buyers. Since the Doklam dispute, payment claims from exporters exporting to China increased significantly.
Lalit Kapoor, former National Vice President of IIA and convener of Uttarakhand region, said that currently more than one hundred and fifty crores of mentha oil is being exported to China from Moradabad division. It is being exported both in crystal and oil. Compared to previous years, now mentha exporters of the division are getting more number of orders to import it from China.