India’s poultry exports, which had come to a standstill during April-May this year due to the war in West Asia, are gradually recovering, even as abnormally high freight rates squeeze exporters’ margins. Increased competition from Turkey in the region has also added to exporters’ concerns.
“Demand is currently mixed, and exporters do not see any significant growth yet, though the market is showing some signs of recovery,” said Valsan Parameswaran, Secretary, All India Poultry Product Exporters Association. Shipping services had been disrupted by the war, bringing exports almost to a standstill in April. Around 120-125 containers were stuck but were cleared by the end of May or early June. Exports gradually recovered to about 25-30 per cent of normal levels in June and July. They have since risen by about 10 percentage points each month and are now at around 50-55 per cent of normal levels, he said.
“Exporters are not in a comfortable situation as freight rates have increased more than four-fold. Shipping costs from India to the UAE have risen from around $1,900 per container to around $9,000 currently. We request the government to intervene and initiate dialogue with shipping lines to bring down costs and increase sailings. We also urge the government to provide some form of subsidy to offset the high freight costs,” Parameswaran added.
Further, Parameswaran said exporters, despite absorbing losses arising from high freight rates, are maintaining shipments to keep the trade chain intact, maintain cash flows, keep infrastructure and the workforce operational, and protect market share. The UAE is the biggest market for Indian poultry products, mainly eggs.
Sustaining shipments
“Sustaining exports also supports domestic demand and prices, which can have a positive impact on the broader market,” Parameswaran said, adding that the Namakkal-Erode region in Tamil Nadu is the country’s major egg-exporting hub, accounting for about 99 per cent of shipments. There are about 11-12 approved compartment farms in the Namakkal region producing eggs for the export market. Some compartment farms in Odisha have also received approval, but logistics remain a challenge, he said.
Overall egg exports were estimated at around ₹2,000 crore last year, Parameswaran said.