logistics price framework: Govt prone to come out with logistics price estimate framework on Thursday

Sumita Dawra, Particular Secretary within the Division for Promotion of Trade and Inner Commerce (DPIIT), had earlier said that the federal government is popping out with its logistics price framework.

The framework would come with parts of this price and methods to measure that.

Acknowledging the need for focused coverage interventions, a report containing baseline aggregated logistics price estimates; and a framework for long-term logistics price calculation is now prepared and has been reviewed by exterior consultants from the World Financial institution, the official stated.

“This complete report is scheduled for the launch on December 14,” the official added.

The target of this endeavour extends past international benchmarking, aiming for policy-making, figuring out challenges within the logistics ecosystem, devising focused interventions, optimising prices, enhancing sector effectivity, and in the end boosting India’s international competitiveness. The official stated that the report titled “Logistics Prices in India: Evaluation and Lengthy-Time period Framework” shall be launched on December 14. This was one of many targets beneath the Nationwide Logistics Coverage, launched in September final 12 months.

Globally, there are totally different methodologies to calculate logistics prices at a macroeconomy stage.

Capturing origin-destination (O-D) pair-wise, commodity-wise, geography geography-wise knowledge is essential for correct estimations.

Nonetheless, the present obtainable non-official estimates of logistics prices (8 to 13 per cent of the GDP) lack a conclusive and scientific calculation framework.

To align India’s logistics prices with international benchmarks by 2030, a necessity was felt to develop a scientific logistics price calculation framework, which is inclusive and stands the take a look at of assorted statistical and data-based strategies after which accumulate the info (main and secondary) for evaluation.

For this objective, the secondary knowledge sources printed by the Ministry of Statistics and Programme Implementation (MoSPI), corresponding to Provide Use Tables, and Nationwide Accounts Statistics, have been used.

The Logistics Division of the Commerce and Trade Ministry has been actively partaking with nationwide and worldwide stakeholders, together with academia and consultants, to reach at a sturdy and complete framework.

In view of this, a Logistics Price workshop was organised by DPIIT in collaboration with ADB on March 20 this 12 months. The emphasis was on convening main consultants worldwide with experience in related areas to study from worldwide greatest practices for estimating logistics prices and charting out the best way forward.

As a means forward, a job drive was constituted. This job drive is devoted to creating a complete framework for estimating logistics prices, together with parameters/variables, knowledge sources, strategy, mannequin for logistics price calculation, and companies to be onboarded.

The duty drive convened a number of conferences from March to September 2023, throughout which they recognized the important parts of logistics price estimation, together with secondary knowledge sources, together with transportation price; warehousing and storage price; auxiliary assist providers price; packaging price, insurance coverage price; and different administrative / operations price.

Logistics price performs a key function in facilitating commerce and enhancing the competitiveness of merchants.