Karnataka Mango exporters faces headwinds due to surging air freight charges

BENGALURU : Mango growers in Karnataka are hit by a double whammy this year — low yield and a dramatic surge in air freight charges.

The crisis in the Middle East is impacting the mango business. Exporting the fruit has become more challenging as slots are difficult to come by and freight rates are fluctuating wildly. 

The Israel-Palestine crisis, and subsequent developments in Iran, have forced ships to avoid the crucial Red Sea trade route, forcing businesses to take to air routes. As a result, the demand has increased and pushed up the air freight rates.

According to farmers and exporters, air freight was around Rs 250 a kg last year. It is between Rs 400 and Rs 550 this year.

Even finding export slots is fraught with uncertainty, and the rates change wildly. “It has become more volatile than the stock market. They quote a price and if we take some time to decide, they pass on the slot to someone else,” said Mr. Hemanth Kumar from Asix Organics, an export company.

This is a huge blow to farmers — exporters who don’t get slots are returning the mango consignments to them. Farmers who have exclusively grown export-quality mangoes are the hardest hit since the input costs are high and they incur losses even if the produce is sold in the local market.

“Export-quality mangoes have to be grown with utmost care. Even a small mark on the fruit results in rejection. To adhere to these standards, we have to bag the fruits and control infections. From harvesting to handling, it is a labour-intensive process,” said Mr. K Srinivas Gowda, President of the Chikkaballapur Mango Growers Association.

If the consignment is returned, the farmers have no option but to sell it in the local market, where prices are low.

“In local markets, we might get Rs 20-30 more than what we do for a kilo of domestic fruit. But when you look at the higher investment, this is no good. Forget profits, we in fact suffer losses,” said Mansoor H, who runs 10 mango farms in Malur.

While exports of many products are affected, mango farmers say they are the worst hit since mangoes have a limited shelf life, and exporters have a window of just eight to 10 weeks.

Amid the Middle East crisis, disruptions in sea trade have prompted exporters to take to air routes, thereby escalating costs.

Representatives from the Karnataka unit of Agricultural and Processed Food Products Export Development Authority told DH they had received numerous complaints about the increase in freight rates and their volatile nature.

“We have communicated the same to the head office and we have been told that the authority will soon speak with the Ministry of Civil Aviation on this matter,” an official said. 

However, this might not bring down the prices of mangoes at the local market drastically since the yield this year is low.