India’s activated carbon exports have been impacted by the ongoing West Asia crisis due to the unavailability of shipping services to certain sectors, higher ocean freight and war risk surcharge.
Joshy Joseph, Director of IndCarb, the Palakkad-based manufacturer and exporter of activated carbon, told businessline that the current crisis in the Gulf region is more severe than the US tariff issue; it has entirely blocked cargo movement to countries such as Sudan and Egypt, where activated carbon is in high demand, thanks to the presence of gold mines. Activated carbon is used in gold extraction, and purification of water and air.
Sudan is reported to be the second highest gold producer in the African region after Ghana. However, the blockade of the Red Sea has disrupted cargo movement to the country, hitting activated carbon manufacturers badly, he said. The other option of diverting cargo via the Cape of Good Hope is time-consuming and costly, he said.
Lack of vessels
Besides, the war risk premium of $3,000 per 40ft container imposed by shipping lines for new cargo as well as already shipped consignments, has not gone down well with manufacturers, who have opposed war risk surcharge on consignments that are already onboard, on which they have paid the freight charge up to their respective destinations.
The non-availability of vessels to Russia is also posing a problem, forcing exporters to take containers to Nhava Sheva Port for shipment. This has incurred an additional cost of ₹1.5 lakh for dispatching containers to Nhava Sheva port alone, he said.
The high price of coconut shells is also a concern for the sector. The raw material (coconut shell charcoal) price has risen to more than ₹90,000 per tonne, compared to ₹45,000 in FY24-25. The US is a major importer of activated carbon, with exports from India reported to be around ₹4,000 crore in FY26, against ₹2,800 crore in FY25, he said.