India's onion exports are running into serious problems from West Asia disruptions, with Gulf ports shutting down and shipping costs going through the roof, says Shvam Dhumal, Director at Nashik-based onion exporter Agroindi EXIM Pvt Ltd. "We had containers loaded on vessels sailing out Feb 27th, March 1st, and 2nd, carrying perishable and non-perishable products. While challenges with perishables stuck at Nhava Sheva are now resolved, non-perishables remain in Mumbai due to high sea freight increases."
Shvam explains, "As soon as the war broke out, immediate disruptions were observed at Jebel Ali. Despite alternate routing through Khor Fakkan around March 7-8th, freight rates doubled and then tripled almost overnight. "A typical 40ft reefer container to Jebel Ali costs USD 800-1,000, and dry containers run at USD 200-400. By the first week, these reefer costs climbed to USD 3,500-4,000 per container, and are USD 7,000-9,000 as of last week."
© Agroindi EXIM Pvt Ltd
"UAE's Khor Fakkan has just 1 terminal handling what Jebel Ali's massive setup used to manage smoothly. Congestion piles on fast and without proper reefer plugs, delays have stretched out, and some containers have even shipped back to India when no terminal space opened up. Over in Oman's Sohar, a drone attack shut things down last week after hitting nearby oil refineries. Shipping lines are picking up ad hoc bookings at USD 7000-8000 for reefers for now, and even small LCL sample shipments that used to ship at low cost now run USD 300-400. Exporters have pulled back on bookings completely, forcing cheaper sales of Mumbai stock."
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Pink Garwa onion harvest has been on since Jan 20th from Maharashtra's Pune district, with export-ready stock available since early February. Nashik's turn comes next. "Major Nashik mandis are seeing over 100 truck arrivals daily, while smaller markets receive around 50 to 60 trucks. Daily arrivals are ramping up steadily, and we expect 200-300 trucks daily within 15 days across Nashik's 14 major markets." Shvam explains, "Red onions drew strong demand from the Gulf before everything locked up. India provides a big chunk of GCC needs for onions, pomegranates, bananas, and watermelons, so when those routes break down, the impact spreads across multiple sectors."
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Last week, onion prices in Dubai were AED 4-6 or USD 1.07-1.4 per kg, while in Kuwait and Oman, with government-mediated price caps, they stood at USD 0.85-0.96 per kg. Onions from Yemen, Sudan, and Pakistan are slipping in cheaper through road routes to cover the gaps. Meanwhile, export auction prices for pink onions are at USD 130-170 per MT for Southeast Asia, while red onions stay at USD 130-140 for both Gulf and SE Asia spots."
Looking ahead, new crops out of West Bengal, Madhya Pradesh, and Gujarat are pouring into North India right now, putting extra pressure on domestic prices. "Farmgate prices in Maharashtra hover at ₹8-12, touching 14 in spots. While APEDA and the Government of India ministries are doing their best to provide clearance and financial support to exporters, we are staying on guard while awaiting real clarity on shipping to decide next steps."
For more information:
Shvam Dhumal
Agroindi EXIM Pvt Ltd
Tel: +91 91 12 200 621
Email: [email protected]
www.agroindi.in
