Dubai serves as the key transhipment hub for Gulf countries where most perishable items such as fruits and vegetables from India make a landing and are then distributed to other countries. However, due to security concerns there was congestion and disruption at the main port of Jebel Ali. This led to significant financial losses for exporters and farmers in India, with agricultural shipments stranded and supply chains severely disrupted amid the ongoing conflict.
India ships fresh, perishable items such as bananas, grapes, pomegranates, watermelons, leafy vegetables and onions to the Middle East. Khor Fakkan is a major port in the UAE located on the Gulf of Oman, outside the Strait of Hormuz.
While freight costs have surged, exporters say the shift is helping avoid delays. “Even though freight is exorbitantly high, we are able to ship our produce,” said Tausif Liyakat, an importer and exporter of exotic fruits.
Shipping companies have already imposed several surcharges for war and container imbalance, besides higher insurance and rerouting cost, taking freight as high as 30% in some cases.
“We missed some business during the month of Ramzan when shipments were totally stuck, but now things have started moving,” said a large exporter of onions, adding that shipping companies are looking for smaller ports which can act as temporary shipment points.
West Asia is an important export destination for India’s agricultural production accounting for $50 billion worth of exports and is the most important destination for rice, spices, meat and fruits.