Indian veg exporters expect 15-20pc fall in shipment
Saturday, 9 January 2021
NEW DELHI, Jan 08: Indian vegetable exporters expect demand from the United Kingdom, a major buyer and a hub for the European market, to fall 15-20 per cent because of lockdowns in that country, industry executives said, report agencies.
"There is also a likelihood of airfreight rates to be increased by airlines in the short run," said Sunil Awari, general manager at Bengaluru-based Namdhari Farm Fresh. There is also a risk of losing business if any UK buyer declines delivery of committed orders, he added. India exports 70-100 tonnes of vegetables to the UK a week, which went up by 15 per cent for Christmas and the New Year, exporters said.
With restaurants and hotels closed due to the coronavirus-induced lockdown, volumes would fall, said Babu Lal Barai, proprietor of Khushi International, which exports fresh fruits and vegetables from Mumbai.
"Looking at the past situations, we are assuming that the airlines will increase freight rates by 10-15 per cent and take advantage of the situation," Barai said.
The current average airfreight tariff is Rs 200 a kilogram (kg), compared with Rs 80 before the Covid-19 pandemic.
Unlike the uncertainty during the lockdown in April and May when the first wave of the novel coronavirus was lashing Europe, airlines seem to be better prepared and geared up for travel bans now, Kay Bee Exports chief executive Kaushal Khakhar said.
When no passenger movement is allowed by the aviation regulator, the same aircraft can be used for transporting essential products, he said.
It has been a difficult year for exporters as countries like Italy, France and Germany have also gone for a second round of lockdown, said Ekram Husain, vice president, Vafa Fresh Vegetables & Fruits Exporters Association.
"With a large growing Asian population, there is a huge demand for Indian vegetables. We just hope the lockdown is not extended, else it will impact the overall exports from the South Asian country.
Exporters are also now looking at ship routes to send cargo to save on transportation cost," he added.