Despite robust exports, Indian mango exporters are grappling with logistical challenges that have impacted their profit margins. The increase in freight costs, particularly for air shipments, has been a significant concern. Exporters have reported that air freight costs have surged to twice the price of the mangoes. Factors contributing to this increase include the Red Sea crisis, shortages of containers and vessels, and congestion in cargo, leading to a shift from sea to air shipments.
One mango exporter said: “This year, due to the Red Sea crisis, container and vessel shortages, cargo congestion and diversion of shipments from sea to air, air freight charges have risen substantially.” Consequently, the cost of shipping has exceeded the price of the mangoes, with freight costs reaching Rs 200-250 per kilogram plus 18% GST. As a result, mango prices in the US market have escalated to $13-14 a kilogram, marking a 30-35% increase from the previous year.
Export statistics reveal a decrease in mango shipments, with 545 metric tons exported from April 1 to June 18, compared to 686 MT in the previous season. Gujarat Agro Limited’s irradiation centre has managed to export 322 MT of mangoes this season, slightly up from 305 MT in 2023. The anticipation for the Kutchi kesar variety is expected to boost Gujarat’s export figures.