With shipping lines, ICDs and CFSs failing to adhere to government order to waive charges, about 6,000 recycling units in India face crisis-like situation, putting the livelihood of about 3 lakh people working in the sector at stake as containers with imported scrap continue to be stranded at ports amid COVID-19 outbreak, according to the Material Recycling Association of India (MRAI). As per industry sources, more than 2.5 lakh containers have been stuck for clearance at ports amid lockdown in the wake of COVID-19 outbreak, reports the Economic Times.

The association which is seeking PMO intervention has said shipping lines and CFSs/ICDs are not adhering to the guidelines of the Ministry of Shipping for waiving levies, container detention, demurrage and other charges on  cargo imports. This has led to containers containing imported scrap worth several lakhs getting stranded, making the industry miserable, the association said, adding that this has also led to over 3 lakh people who are dependent on recycling sector for their livelihood, staring at starvation, the report indicated.   

Last month the government had asked all major ports in India to defer the lease rentals and licence fees-related charges for April, May and June besides waiving rentals in proportion to the cargo drop and not to levy penalties. In a letter the Shipping ministry had asked the ports to provide relief in the form of exemptions/remission of charges to the shipping liners, exporters, importers, logistics providers and other stakeholders hit by the coronavirus outbreak.  

However, MRAI said these orders are being violated by shipping lines, CFSs/ICDs and added that financial difficulties due to this has put a large number of people at stress as the recycling sector also indirectly supports livelihood of rag pickers and smaller scrap traders.

“Whereas the 6,000 odd MSME units in the recycling segment from metal and paper are adhering to government order to give salaries to their employees who are mainly from the weaker section of the society, here are foreign shipping lines and their associates who do not even listen to Ministry of Shipping guidelines,” Sanjay Mehta, President, MRAI was quoted as saying.

The association alleged that these are the same shipping lines that make millions of dollars from the Indian trade and industry but refuse to extend a helping hand during this crisis, where everyone else is contributing to help the country alongside the government. The recycling industry urged the government to intervene in the matter for the survival of 6,000 units and their employees by ensuring implementation of its orders including waiver of charges, as per the report.  

The Ministry of Shipping had issued an order dated April 21, and Director General of Shipping on April 22, calling for a waiver of all charges at ports by shipping lines and CFSs/ICDs.