Govt launches ₹497-crore RELIEF scheme to cushion exporters hit by West Asia logistics disruptions

The government has approved a support scheme to help exporters cope with surging freight, insurance and war-risk costs caused by disruptions in West Asia shipping routes, the commerce ministry said on Thursday.

The scheme, called RELIEF (Resilience & Logistics Intervention for Export Facilitation), comes in response to escalating logistics challenges in the Gulf region, including vessel diversions, longer shipping routes, congestion at transshipment hubs and conflict-linked surcharges.

“These developments have increased logistics costs and created operational uncertainty for export consignments moving to or through the region,” the commerce ministry said in a statement.

The government said the time-bound intervention would support shipments already affected by the disruption as well as upcoming exports to the region.

The implementation of RELIEF will be undertaken under Export Promotion Mission with an approved financial outlay of ₹497 crore.

State-owned ECGC Ltd has been designated as the nodal agency for implementing the RELIEF scheme, including verification, claim processing, disbursement and monitoring.

Under the scheme, exporters with existing ECGC insurance cover will receive up to 100% risk coverage for eligible consignments shipped between February 14 and March 15, 2026, without any extra financial burden.

For shipments planned between March 16 and June 15, exporters will be eligible for government-supported risk coverage of up to 95% over and above existing ECGC cover.

The scheme offers partial reimbursement of up to 50% of elevated freight and insurance costs for eligible small exporters who did not have ECGC cover during the disruption period, subject to a ceiling of ₹50 lakh per exporter and prescribed conditions.

“Through RELIEF, the government aims to mitigate the immediate impact of logistics disruptions, protect exporter confidence, prevent order cancellations and safeguard employment in export-linked sectors,” the ministry said.

An Inter-Ministerial Group (IMG) on Supply Chain Resilience has been operational since March 2 and has been holding daily meetings to monitor the evolving situation and coordinate relief measures.

The government said several steps have already been implemented based on IMG deliberations, including procedural relaxations for stranded cargo, waiver of storage and dwell time charges at ports, improved coordination among logistics stakeholders, and advisories to enhance transparency in shipping line pricing.