ROUND TABLE-2: Mittoo stumped on TAT

Chief Economic Adviser Krishnamurthy Subramanian, Govt of India

Ramesh Kumar from Greater Noida


Dad, What you make of Krishnamurthy Subramanian?

You mean the Chief Economic Adviser, huh?

Yep.

What's your interest in him, Mittoo?

Glancing through the Economic Survey 2019-2020 prepared by him...

Hmmm.. So what's your question?

Dad, I heard you talking about TAT ... you know Turn Around Time? ...

Stop acting smart...

No, dad...

Come to the point

I was reading up the Ease of Doing Business part and wherein I saw the performance in logistics. Both imports into and exports out of India.

Okay. what did you make of it?

Dad, the Economic Survey captured a few live examples. Exporting apparels from a Delhi factory to Maine, US via JNPT. Five days from the factory to JNPT. Next 14 days spent unloading (1/2), customs clearance (2), stuffing container (2), queue for entry into the ship (2), handover to shipping line (1) and then the ship departure. All put together 19 days.

Then, Mittoo...

On highways, the consignment spends another 19 days. That's on Day 38, it reaches the American port. The next three days spent at Houston clearing customs assuming all paperwork is in place and no hera pheri on inspection, loading, and departure for Maine. On Day 41 from the date of leaving the Delhi factory, it is on the buyers' premises.

Mittoo, who did this case study?

Quality Council of India between October and December 2019. The report says, "However, much of the delay is due to the misalignment of processes that do not allow for “just in time” protocols. The uncertainty of time needed to clear each step means that exporters have to pad up the time spent waiting. This adds to the clogging of port space. ... There is obvious scope for improvement".

Okay...

Dad, another case study of exporting carpets from Mirzapur/Uttar Pradesh to New Jersey via an ICD in Piyala, Haryana is equally tedious and time-consuming. The story is the same as in the previous case study.  However...

However, what, Mittoo?

Can I cite a reverse case for a better understanding?

Sure, sure...

A Milan/Italy carpet exporter sends stuff to Beawar/Rajasthan. 10 hours from the Italian factory to Naples covering 773 km. Yes, 10 hours in Italy.  Two hours for customs clearance, one hour to load the ship. Less than a day from the factory to ship! How? Alignment of all processes. Or Just in Time. Next 23 days on highways to Mundhra on the Gujarat coast. Here comes the interesting part...

Hmmm.

The ship reached on Day 24. Next six days at Mudhra Port for waiting outside port (2), customs clearance (2), 7 hours to exit port. On Day 31, it reaches the Beawar importer. Eight days in India on border compliance protocol and travel time.

What's new, Mittoo?

Dad, the QCI study found that the processes for imports are better than the process for exports.

I am sure, the Survey should have talked about how things are on the mend...

Ugh. How do you know that, Dad?

Experience, beta... experience...

The Survey says the ship TAT was declining continuously. From 4.67 days in 2010-11 to 2.48 days in 2018-19. Hang on... it also says...

What's so exciting... You say "hang on"?

The Survey says, Dad, no full case study of Chennai port was not done where the processes are smoother than those of the other ports.

Okay...

Dad, something interesting you may like to hear..

Go ahead, Mittoo...

An electronics export load from Bengaluru via air is of world standard. 10 hours in India from the factory to airport, five hours flight to Hongkong and seven hours from HK airport to customer warehouse. ... Yahoo...

Stop, Mittoo... 

Sorry, Dad. Got carried away... Because our airports are at par or even better than their counterparts.

What about the cost, Mittoo?

(Radio silence)

Mittoo... Mittoo ... Are you there? 

(Radio silence)

Anticipated this. Defending the indefensible! Ease of Doing Business in India is a conundrum. 

Dad, why are you so pessimistic? Won't change desirable? Don't you want it to happen? Yes, you do.

Enough, Mittoo. I'm not pessimistic. If at all some better things have to happen, they have to happen on its own. 

You mean to say, the proposed National Logistics Policy is hogwash?

I never said it. You're putting words into my mouth. All I am saying is "wait and watch".

Okay. Let me.

Mood off ho gaya? Mittoo... Mittoo!


Want to read the ROUND TABLE-1? 
Why Mittoo hates Nitin Gadkari ...
Click here