The industry highlighted that India’s exports of perishable products like agricultural produce, dairy items, and fruits are encountering obstacles due to Middle East tensions and supply chain disruptions. These challenges are exacerbated by escalating logistics costs and interruptions in crucial maritime trade routes, especially impacting exporters dealing with time-sensitive goods. Vijay Kalantri, Chairman of World Trade Center Mumbai and President of the All India Association of Industries (AIAI), noted that India’s annual exports of agricultural and processed food products exceed $50 billion, with dairy exports valued at around $500 million.
Recent disruptions in global supply chains and surging freight charges are driving up logistics expenses, particularly burdening small and medium-sized enterprises engaged in exporting perishable items. The quality, competitiveness, and export margins of products like dairy items, fruits, vegetables, and processed food are directly at risk due to shipping delays caused by these challenges. Industry estimates reveal a significant spike of about 40 per cent in freight and logistics costs on specific trade routes, further complicating the situation for exporters of perishable goods.
Kalantri emphasized the necessity for long-term support measures to aid exporters in the agriculture and perishable goods sector. He urged the government to consider targeted assistance such as logistics and freight subsidies for perishable goods exporters, coupled with interest subsidies on export-related financing. The industry stressed the importance of prompt policy interventions to address the mounting logistics costs and ensure the competitiveness of India’s agriculture and perishable exports in the global market.
