This year, mango farmers in Karnataka are grappling with significant challenges, including low yields and a sharp increase in air freight expenses. The ongoing crisis in the Middle East has severely impacted the mango industry, making the export of fruits a daunting task due to limited slots and fluctuating freight rates.
Skyrocketing Air Freight Costs
Last year, air freight costs per kilogram were around Rs 250, but this year they have surged to Rs 400 to Rs 550. This surge has put immense pressure on farmers, making exporting their produce financially burdensome.
Uncertain Export Slots
Securing export slots has become increasingly uncertain, with rates fluctuating unpredictably. This situation has been described as more volatile than the stock market, causing immense stress for farmers who risk losing their slots to other exporters if decisions are not made swiftly.
Impact on Export-Quality Mango Farmers
Farmers who produce export-quality mangoes face significant losses when consignments are returned due to slot unavailability. These farmers invest heavily in ensuring their mangoes meet export standards, from meticulous care during cultivation to handling.
Local Market Sales
When consignments are returned, farmers have no choice but to sell their produce in the local market, where prices are considerably lower. Despite slightly higher prices compared to domestic fruit, the increased investment still results in losses for farmers.
Disruptions in Sea Trade
Disruptions in sea trade have further exacerbated the situation, prompting exporters to rely more on air routes, which drives up costs even more.
Efforts to Address the Issue
Representatives from the Karnataka unit of Agricultural and Processed Food Products Export Development Authority have pledged to engage with the Ministry of Civil Aviation to address the issue. However, stabilizing freight rates may not significantly alleviate the financial strain on farmers, given the low yield this year, which remains a pressing concern.
Conclusion
The ongoing crisis in the Red Sea, compounded by developments in the Middle East, has led to increased reliance on air routes, driving up demand and inflating air freight rates. Mango farmers in Karnataka are facing an uphill battle this year, navigating through both economic and environmental challenges.
