WTC Mumbai Urges Freight Subsidies as Supply Chain Disruptions Threaten India’s Perishable Exports

The World Trade Center Mumbai and the All India Association of Industries (AIAI) have raised concerns about the impact of geopolitical tensions and global supply chain disruptions on India’s perishable exports. Rising freight costs and instability in key maritime trade routes are affecting exporters of time-sensitive agricultural and food products.

The World Trade Center Mumbai and the All India Association of Industries (AIAI) have highlighted the challenges faced by exporters of perishable products due to global geopolitical tensions and disruptions in supply chains. According to the organizations, increasing logistics costs and interruptions in maritime trade routes are affecting exports of agricultural produce, dairy products, fruits, and other agri-food commodities.

Dr. Vijay Kalantri, Chairman, World Trade Center Mumbai and President, All India Association of Industries (AIAI), said, “India’s exports of agricultural and processed food products are valued at over USD 50 billion annually, with dairy exports estimated at around USD 500 million. A significant share of these exports consists of perishable and time-sensitive products and is destined for markets in the Middle East, Europe and Asia, which rely heavily on stable maritime connectivity. However, recent supply chain disruptions and rising freight costs have increased logistics expenses, placing pressure on small and medium-sized exporters, as delays in transit can directly affect product quality, competitiveness and export margins.”

Dr. Kalantri, emphasized, “India’s exports of agri-food and other perishable products such as dairy items, fruits, vegetables and processed food are highly time-sensitive and depend on efficient logistics and reliable shipping connectivity to reach international markets without affecting their quality and shelf life. Ongoing geopolitical tensions and disruptions in global shipping routes are creating growing challenges for exporters dealing with perishable goods. Industry estimates suggest that freight and logistics costs on certain routes have increased by 40 percent or more in recent times, placing additional pressure on exporters of perishable products.”

“There is a need to look at long-term solutions to support exporters of agriculture and perishable products. We appeal to the Government to consider targeted support measures, including logistics and freight subsidies for exporters of perishable goods, as well as interest subsidy on export-related financing to support companies engaged in agriculture and perishable exports. Such measures will help safeguard the interests of exporters, particularly small and medium-sized enterprises.” added Dr. Kalantri.

WTC Mumbai and the All India Association of Industries (AIAI) stated that timely government intervention would help address the challenges arising from higher logistics costs and maintain the competitiveness of India’s agriculture and perishable export sector in global markets.