Exporters Seek Govt Aid as Middle East Tensions Spike Perishable Goods Costs

Rising logistics costs and disruptions in key maritime trade routes are creating difficulties for exporters, particularly those dealing with time-sensitive commodities.

Vijay Kalantri, Chairman of World Trade Center Mumbai and President of the All India Association of Industries (AIAI), said India's exports of agricultural and processed food products are valued at over $50 billion annually, while dairy exports are estimated at around $500 million.

"A significant share of these exports consists of perishable and time-sensitive products destined for markets in the Middle East, Europe and Asia, which depend heavily on stable maritime connectivity," he said.

However, recent disruptions in global supply chains and rising freight charges have pushed up logistics costs, placing pressure on exporters, especially small and medium-sized enterprises.

Kalantri said delays in shipping could directly affect product quality, competitiveness and export margins, particularly for commodities such as dairy items, fruits, vegetables and processed food.

Industry estimates suggested that freight and logistics costs on certain trade routes have increased by about 40 per cent in recent times, adding to the challenges faced by exporters of perishable goods.

He also called for long-term measures to support exporters in the agriculture and perishable goods sector.

"We appeal to the government to consider targeted support measures such as logistics and freight subsidies for exporters of perishable goods, along with interest subsidy on export-related financing," Kalantri said.

The industry also emphasised the need for timely policy intervention to mitigate the impact of rising logistics costs and ensure that India's agriculture and perishable exports remain competitive in global markets.

- IANS