New Delhi, March 28: The ongoing tensions in the Middle East are visibly affecting India’s exports. Experts indicate that various sectors, including handicrafts and mangoes, have been impacted recently. However, the situation is gradually improving, with the government making continuous efforts to address these challenges.
Javed Tenga, president of the KCCI, spoke to a news agency, stating that approximately 50-60% of their trade is with Middle Eastern countries. Sales typically surge during Ramadan, but this year, the conflict has halted business operations, delivering a significant blow to exporters.
Tenga explained that due to the war, a large volume of export goods is stuck in India. Payments for goods that have already been dispatched are also delayed. He noted that exporters are nearly out of pre-shipment and post-shipment banking limits, increasing pressure on their operations. In light of this situation, they have requested the government for at least a six-month relief extension.
The handicraft sector has been the most severely affected by this crisis. With movement restrictions and market closures in the Middle East, sales have come to a standstill. According to Tenga, this situation has impacted handicraft exports by nearly 100%, jeopardizing the livelihoods of millions associated with this sector.
Feedback regarding exporters’ issues has been communicated to the government. Lov Agarwal (DGFT) has taken a positive approach to this matter, assuring exporters that efforts will be made to resolve their problems.
Prakash J. Khakhar, chairman of KB Exports, mentioned that the Middle East crisis has also affected mango exports. Currently, exports are primarily occurring via air, significantly increasing costs. Air freight rates have surged from approximately ₹300 per kilogram to between ₹600-650.
He noted that not all airlines are operational at this time, affecting connectivity. Presently, limited exports are possible to destinations such as London, Singapore, Dubai, Hong Kong, and Goa. The increased costs and limited options are causing substantial losses for exporters.
Exporters have appealed to the government for temporary air freight subsidies to alleviate the rising cost burden. They argue that the open sky policy has allowed airlines to charge exorbitant rates, adversely affecting trade.
There has also been significant volatility in mango prices. At the season’s start, prices reached ₹1500-1800 per unit but are now gradually declining. As market supply increases, prices are expected to stabilize, providing relief to domestic consumers.
Overall, the Middle East crisis has had a profound impact on India’s exports, particularly in the handicraft and agricultural sectors. Nevertheless, ongoing dialogue between the government and exporters raises hopes for concrete measures to overcome this crisis soon.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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