Suspension of flights, shipping surcharge push exporters from south India to the edge

The cancellation of scheduled flights from India to West Asia has put exporters in trouble as it has disrupted the supply chain of vegetables, fruits and seafood exported from South India, including Kerala, which has a strong market in West Asian cities as well as Europe. The suspension of flight services has also led to an accumulation of perishable goods in the warehouses of exporters in Kerala, prompting many to sell export-quality products at cheaper prices in local markets.

An Instagram video has gone viral in Kerala, showing export quality vegetables and fruits that cannot be exported to overseas markets via Calicut International Airport being sold by local vendors in Tirur market. To talk HinduAround 100-150 tonnes of vegetables, fruits, flowers and seafood are exported daily from Thiruvananthapuram International Airport to West Asian and European markets, said K. Suresh Kumar, president of Air Cargo Agents Association of India (ACAAI), a body of air freight forwarders with around 600 members in the state.

The total volume of perishable goods exported to overseas markets through the four international airports in Kerala is around 400-600 tonnes of cargo per day. Approximately 30-40% of cargo is destined for the West Asian market only, while the remainder is routed to Canada as well as European destinations including the UK, France and Italy, and US Transit flights operated by Emirates and Qatar Airways are used to send shipments to Europe primarily via Dubai and Doha.

Exporters, on the other hand, rely on flights operated by IndiGo, Air India Express and Air Arabia to send goods to the West Asian market.

Mr. Suresh said the suspension of flights led to an almost complete halt of exports from Kerala and other cities in India, inflicting heavy losses on exporters and farmers in south India.

Most of the vegetables passing through Kerala come from neighboring countries such as Tamil Nadu and Karnataka.

Emergency surcharge

Shipping companies have imposed emergency surcharges ranging from $2,000 to $4,000 on cargo passing through the Strait of Hormuz, citing increased security risks. Munshid Ali, secretary of the Kerala Exporters Forum, said this has pushed exporters to the brink.

On air shipments, airlines like Emirates now charge ₹215 per cargo, compared to around ₹60 per kg earlier following partial reopening of airspace, Mr. Suresh said.