India’s agricultural exports to the Gulf region are witnessing a slowdown as elevated freight rates continue to strain trade economics, exporters and logistics players said.
Shipments of key commodities such as rice, fruits, vegetables, and spices have been impacted in recent weeks, with exporters either deferring consignments or renegotiating contracts due to rising transportation costs. The surge in freight rates—driven by vessel shortages, longer transit times, and ongoing geopolitical disruptions—has significantly increased overall export expenses.
Industry stakeholders noted that container availability remains tight on key West Asia routes, while rerouting of vessels and congestion at transshipment hubs have further added to delays and cost pressures. For perishable cargo, the situation is particularly challenging, as higher logistics costs and transit uncertainties directly affect product quality and shelf life.
Exporters, especially small and medium enterprises, are finding it difficult to absorb the increased costs or pass them on to buyers in highly price-sensitive Gulf markets. As a result, some shipments have been scaled back, while others are being redirected to alternative destinations with more stable freight conditions.
Trade bodies have urged the government to step in with targeted support measures, including freight subsidies and enhanced logistics infrastructure, to maintain India’s competitiveness in the Gulf market. They also called for closer coordination with shipping lines to ensure stable capacity and more predictable freight pricing.
Despite the current slowdown, exporters remain cautiously optimistic about demand recovery, provided freight rates stabilize and supply chain conditions improve in the coming months.