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 for vegetables, fruits, and seafood exported from South India, including Kerala, which has a strong market in West Asian cities as well as in Europe. The suspension of flight services has also led to the accumulation of perishable goods in the warehouses of exporters in Kerala, forcing many to sell export-quality produce in local markets at cheaper rates.

An Instagram reel showing export-quality vegetables and fruits being sold by local vendors in the Tirur market, after they could not be exported to overseas markets through Calicut International Airport, has gone viral in Kerala. Speaking to The Hindu, K. Suresh Kumar, chairman of the Air Cargo Agents Association of India (ACAAI), a body of airfreight forwarders with around 600 members in the State, said about 100–150 tonnes of vegetables, fruits, flowers, and seafood are exported daily to West Asian and European markets from the Thiruvananthapuram International Airport.

The total volume of perishable goods exported to overseas markets through the four international airports in Kerala is about 400–600 tonnes of cargo per day. Around 30-40% of the cargo is meant exclusively for the West Asian market, while the rest is routed to European destinations, including the U.K., France, and Italy, as well as to Canada and the U.S. Transit flights operated by Emirates and Qatar Airways are primarily used to ship consignments to Europe via Dubai and Doha.

On the other hand, exporters depend on flights operated by IndiGo, Air India Express, and Air Arabia to ship goods to the West Asian market.

The suspension of flights has led to a near-total halt in exports from Kerala and other cities in India, inflicting heavy losses on exporters and farmers from southern India, Mr. Suresh said.

The bulk of the vegetables routed through Kerala is sourced from neighbouring States like Tamil Nadu and Karnataka.

Emergency surcharge

Adding to their woes, shipping carriers have imposed an emergency surcharge ranging between $2,000 and $4,000 on cargo transiting through the Strait of Hormuz, citing escalating security risks. This has pushed exporters further to the brink, said Munshid Ali, secretary of the Kerala Exporters’ Forum.

In the case of air shipments, airlines such as Emirates are now charging ₹215 per kg of cargo, compared with around ₹60 per kg earlier, following the partial reopening of airspace, Mr. Suresh said.