Exports of tender coconuts from Pollachi in Tamil Nadu’s Coimbatore district have come to a near standstill over the past two months, as soaring freight rates and prolonged transit delays linked to the ongoing tensions between Iran and Israel disrupt global shipping routes.
Traders say the sharp escalation in logistics costs, coupled with uncertainty over delivery schedules, has made exports commercially unviable. As a result, several consignments have been cancelled despite sustained demand from overseas buyers, who are increasingly cautious amid volatile supply chain conditions.
The crisis has been compounded by widespread disruptions across global maritime corridors. Transit through the Suez Canal has slowed significantly, while vessels are being rerouted along longer paths, pushing delivery timelines for European destinations to nearly a month.
Shipments to Gulf markets have been particularly affected, with vessels avoiding the Strait of Hormuz due to security concerns. This has effectively doubled transit times, making it difficult to export highly perishable commodities such as tender coconuts, which typically have a shelf life of about a week.
Consequently, exports to key Gulf countries, including Saudi Arabia and Kuwait, have been halted. Shipments to major markets across Europe, East Asia and North America have also been suspended.
On the domestic front, exporters are grappling with labour shortages, as a portion of the workforce has been diverted to election-related duties. This has disrupted harvesting, de-husking, processing and packaging operations. Rising input costs, particularly fertilisers, have added further strain.
Production has also taken a hit due to pest infestations such as whitefly and root wilt disease, along with a prolonged dry spell, leading to a decline in yields by up to 25 per cent.
Pollachi, which accounts for around 86,800 hectares of coconut cultivation in Coimbatore district, is renowned for its high-quality tender coconuts with high water content.
Despite the export slowdown, robust domestic demand has offered some relief to growers. Farm-gate prices are currently hovering around ₹49 per coconut, while retail prices remain above ₹60 in several markets.
