Due to the threat in the Red Sea, a significant logistics bottleneck is looming over the export season of grapes, despite expectations of a bumper season following two lean years. Vilas Shinde, CMD of the Sahyadri Farmers Producer Company, suggested that the increased logistics costs incurred by rerouting containers via the Cape of Good Hope could render exports non-feasible if the situation persists.
This threat stems from escalating attacks on sea vessels by Yemen-based Houthi rebels, backed by Iran. These attacks have disrupted the freight corridor, impacting the fastest and most convenient route for freight vessels. Indian exporters, who majorly target the European and US markets, are concerned about the potential impact on the peak export season in February and March.
Interestingly, this blockade comes as India was anticipating a prosperous export season, with an average export of around 250,000-260,000 tons of grapes, generating between $315-320 million. Shinde expressed concern that persistent logistics issues could undermine the quality produce available for export.
Source: indianexpress.com