The ongoing war-like situation in Iran has increased the concerns of Indian fruit and vegetable exporters. The entire shipment plan has gone haywire and all cost calculations have gone haywire. Pune exporter Danesh Shah said that he had prepared a consignment of onions for Europe, but now the sea freight has increased significantly. Earlier the goods used to reach in 2025 days, now it is taking 4045 days. Transshipment hubs are also affected, causing further delays. Shah had taken big orders from West Asia and Europe, but due to changing circumstances, he may now have to sell the bananas destined for Gulf countries at cheaper prices. Besides, the risk of onion spoilage has also increased due to long transit time.
Air freight costlier, sea freight also increased
Kushal Thakkar of Kay Bee Exports said that they have reduced spot purchases as the goods sent in transit have already been affected. Air freight has either become too expensive or is not available. Thakkar sends fresh vegetables like ladyfinger, bottle gourd and baby corn to supermarkets in the UK and UAE. According to exporters, wherever cargo space is available, prices are increasing rapidly. Airlines are charging 3040% more fares for Europe. Due to closure of many airports in West Asia, the bargaining power of airlines has increased. There has also been a huge increase in sea freight.
Rice export also affected
Indian Rice Exporters Federation Vice President Dev Garg said that the cost of sending a 20 feet container to Saudi Arabia increased to $ 2,600 in 48 hours. Many shipping companies have imposed war surcharge. Shipments to Africa have also become more expensive by about 20% due to the lack of ships. The federation has advised to recall the goods going to Iran and UAE or divert them to other ports. According to industry estimates, about 4 lakh tonnes of rice is currently on the way. Exporters say some European buyers are willing to pay higher prices, but the current uncertainty remains a matter of concern for the global retail market.