Call for Sustainable Solutions for India's Perishable Goods Exporters Amid Global Challenges
Synopsis
The ongoing geopolitical tensions and supply chain issues are significantly hampering India's perishable goods exports, prompting industry leaders to call for sustainable solutions. With logistics costs surging, the future of dairy, fruits, and agricultural exports hangs in the balance.
Key Takeaways
Geopolitical tensions are disrupting supply chains.
Logistics costs have surged by approximately 40% .
India's annual agricultural exports exceed $50 billion .
Industry leaders are calling for government support .
Delays in shipping can impact product quality and competitiveness .
New Delhi, March 10 (NationPress) Tensions in the Middle East, coupled with significant disruptions in supply chains, are creating obstacles for India’s exports of perishable goods including agricultural products, dairy items, and fruits, as reported by industry leaders on Tuesday.
Increasing logistics expenses and interruptions in crucial maritime routes are complicating matters for exporters, especially for those handling time-sensitive commodities.
Vijay Kalantri, the Chairman of the 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, while dairy exports alone are valued at around $500 million.
"A large portion of these exports comprises perishable and time-sensitive items aimed at markets in the Middle East, Europe, and Asia, which are highly reliant on consistent maritime connectivity," he stated.
Unfortunately, recent global supply chain interruptions and escalating freight costs have significantly increased logistics expenses, placing additional strain on exporters, particularly small to medium-sized enterprises.
Kalantri emphasized that shipping delays could have direct repercussions on product quality, competitiveness, and profit margins for commodities like dairy, fruits, vegetables, and processed food.
Industry analyses indicate that freight and logistics expenses on certain trade routes have surged by approximately 40% recently, further complicating the landscape for exporters of perishable goods.
He urged for long-term strategies to bolster exporters in the agricultural and perishable goods sectors.
"We request the government to consider specific support initiatives such as logistics and freight subsidies for exporters of perishable items, along with interest subsidies on export-related financing," Kalantri mentioned.
The industry also highlighted the necessity for prompt policy actions to alleviate the effects of rising logistics costs and maintain India's agricultural and perishable exports' competitive edge in global markets.
Point of View
It is essential to recognize the challenges faced by Indian exporters amid geopolitical tensions. The plight of small and medium enterprises in the perishable goods sector underscores the need for immediate policy interventions to ensure their survival and maintain India’s competitive edge in global markets.
NationPress
29 Jun 2026
Frequently Asked Questions
What impact do geopolitical tensions have on India's exports?
Geopolitical tensions lead to supply chain disruptions and increased logistics costs, which significantly affect India's exports of perishable goods.
How much are India's agricultural exports valued at?
India's agricultural and processed food exports are valued at over $50 billion annually.
What is the estimated value of India's dairy exports?
India's dairy exports are estimated to be around $500 million.
What support is the industry seeking from the government?
The industry is urging the government to provide logistics and freight subsidies for exporters of perishable goods and interest subsidies on export-related financing.
How have logistics costs affected exporters?
Logistics costs on certain trade routes have risen by about 40%, adding pressure on exporters, especially smaller enterprises.
