The correct answer is: a) High logistics costs.
Logistics costs are the costs associated with the movement of goods from the point of production to the point of consumption. They include the costs of transportation, warehousing, and inventory management.
High logistics costs can be a major challenge for exporters, as they can increase the cost of goods and make it difficult to compete in international markets. There are a number of factors that can contribute to high logistics costs, including:
- Distance: The distance between the point of production and the point of consumption can have a significant impact on logistics costs. The longer the distance, the higher the costs of transportation and warehousing.
- Infrastructure: The quality of infrastructure, such as roads, railways, and ports, can also affect logistics costs. Poor infrastructure can lead to delays and increased costs.
- Regulations: The cost of complying with regulations can also add to logistics costs. For example, exporters may need to obtain permits and licenses, which can be time-consuming and expensive.
There are a number of things that can be done to reduce logistics costs, including:
- Optimizing the supply chain: By optimizing the supply chain, exporters can reduce the costs of transportation, warehousing, and inventory management.
- Using technology: Technology can be used to improve efficiency and reduce costs. For example, using electronic data interchange (EDI) can help to reduce the costs of paperwork and communication.
- Working with logistics providers: Working with experienced logistics providers can help exporters to reduce costs and improve efficiency.
The government can also play a role in reducing logistics costs by investing in infrastructure and simplifying regulations.
Lack of skilled labor, limited market access, and complex regulations are also challenges faced by exporters in Andhra Pradesh, but they are not as significant as high logistics costs.