The commerce ministry has roped in Deloitte to rank states on their performance on logistics. The global consulting firm will formulate indicators which will reflect issues such as truck stoppages, anti-competitive practices and role of intermediaries affecting exports.
Efficiency in processes, ease of arranging logistics, quality of infrastructure, adherence to timelines, competence and quality of logistic operators will be the key indicators. “The idea behind state-level logistics indicators is to look at the hinterland issues … things like truck stoppages and detentions that goods face before reaching ports,” a commerce department official said.
In the next six months, Deloitte will survey production clusters and inland container depots and submit a report to the government.
It has also been asked to check for issues pertaining to local regulation, anti-competitive practices, including from local truckers union, and the role of intermediary traders and commodity specific market organisations in shaping supply chains.
“Exporters will be surveyed to see if the check posts in 22 states have been removed,” the official added. Post the roll out of Goods and Services Tax, these states had abolished check posts which were used to scrutinise consignments, which often led to delays.
Brazil and China too are said to be working on such sub-national level indicators in logistics. “We need to commence work on this with regard to both ease of doing business and trade facilitation. We will give our report by January after incorporating the interventions needed for different states,” said a Deloitte official.
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