Mango Exports Face Challenges Amid Middle East Tensions

Middle East Tensions Disrupt India’s Exports, Hit Handicrafts and Mango Shipments​

New Delhi, March 28: Ongoing tensions in the Middle East are beginning to weigh on India’s export sector, with handicrafts and mango shipments among the worst affected, according to industry stakeholders.

Heavy Dependence on Middle Eastern Markets​

Exporters highlighted that nearly 50 to 60 percent of trade in certain sectors is linked to Middle Eastern markets. Demand from the region typically peaks during the Ramzan period, making the current disruption particularly significant.

Kashmir Chamber of Commerce and Industry President Javid Tenga said that the usual surge in sales during Ramzan has not materialized this year.

"Sales usually surge during Ramzan, but this time the ongoing tensions have brought trade to a halt, dealing a major blow to exporters," he said.

Export Consignments Stranded, Payments Delayed​

The disruption has led to large volumes of export consignments being held back within India. At the same time, exporters are facing delays in receiving payments for shipments already dispatched.

Tenga noted that exporters are under mounting financial pressure, with both pre-shipment and post-shipment banking limits nearing exhaustion.

To address the liquidity crunch, exporters have urged the government to provide at least a six-month extension in credit facilities.

Handicrafts Sector Faces Severe Impact​

The handicrafts industry has been hit particularly hard due to market closures and restricted movement across West Asia.

"Handicraft exports have been impacted almost entirely, affecting the livelihoods of a large number of people associated with the sector," Tenga said.

Government Acknowledges Exporters’ Concerns​

Exporters have raised the issue with the government, and Director General of Foreign Trade Lav Aggarwal has acknowledged the concerns. Officials have indicated that efforts are underway to address the challenges being faced by the sector.

Mango Exports Hit by Rising Air Freight Costs​

The crisis has also impacted mango exports, with disruptions in sea routes forcing exporters to rely heavily on air cargo.

Kay Bee Exports Chairman Prakash J. Khakhar said air freight costs have nearly doubled, rising from around Rs 300 per kg to Rs 600 to 650 per kg. This sharp increase has significantly raised operational costs for exporters.

He added that limited airline operations have reduced connectivity, restricting exports to select destinations such as London, Singapore, Dubai, Hong Kong and Goa.

Call for Air Freight Subsidies​

Exporters have urged the Union government to consider temporary air freight subsidies to offset rising logistics costs. They have also raised concerns about airlines charging higher rates amid limited competition under the open sky policy.

Mango Prices See Volatility​

Mango prices have experienced sharp fluctuations during the early season, reaching levels of Rs 1,500 to Rs 1,800 per unit before gradually easing.

Industry players indicated that prices are expected to stabilize further as arrivals increase in the domestic market.