India's grape exporters are grappling with serious challenges from the Middle East conflict, as Gulf shipments grind to a halt and shipping routes turn chaotic, explains Rajendra Pandit Deore of ShreeKrishna IMPEX Ventures. "A major chunk of our grapes normally heads to the Middle East, and right now that's completely stopped."
According to Rajendra, Gulf ports in Dubai and Qatar typically snap up the long green Sonaka and some Thompson seedless grapes, but with those routes blocked, exporters are diverting volumes back to domestic markets. This predicament comes at the worst time: "India's grape season is already running at 40% below normal yields due to early weather issues. With volumes diverted, arrivals in Delhi, for instance, spiked to 50 to 60 trucks a day, more than double the market's usual 18 to 20 trucks capacity, crashing prices from USD 1.5 to 1.7 per kg to USD 0.9 to 1.08 per kg. The market has collapsed, and that's hitting growers hard," he notes.
© ShreeKrishna IMPEX Ventures
Europe-bound shipments are not faring much better either. "Vessels that once took 18 to 20 days through the Red Sea now detour around the Cape of Good Hope, pushing transit times to 35 days or more. The Gulf tensions add another 10 to 15 days of uncertainty. "Shipping lines just cannot commit, as what they call 4 to 5 days to port can stretch to 7 to 10 days," Rajendra says. "Freight costs have jumped too, from a base of USD 2100 to 2,400 per container, shipping lines are now adding a USD 600 "bunker cost" to cover fuel risks from the conflict, with reviews due in 15 to 20 days that could push it higher."
Even the specialized reefer containers are at risk, Rajendra figures. "India exports far more than it imports, where empty boxes typically cycle back from Gulf ports to reload. With that flow disrupted, shortages could hit by early April, though none are reported yet." He also points to exporters paying record domestic prices of USD 1.6 to 1.8 per kg, while covering stable labor and packing costs plus soaring logistics. "For Europe, CIF prices for 5 kg boxes have climbed from €10.7 to €11-11.5, but sales are still running at a loss of €2-2.5 per box."
© ShreeKrishna IMPEX Ventures
The coming weeks will see March volumes fading fast. "We'll see roughly 400 containers weekly across the industry, wrapping by mid-April for Europe. Thompson and Sonaka will trickle to disrupt Gulf markets and Southeast Asia, including Thailand, Malaysia, Singapore, and Hong Kong, into April. Coloured varieties like Crimson and Sharad Seedless or Jumbo are nearly over, commanding premium prices."
"We're operating in the negative right now with no breakeven in sight. With India's short grape season dragging on, Thompson and Sonaka shortages loom large. Oversupply from places like South Africa, Peru, and Chile in Europe, combined with these logistics costs, makes grape exports to Europe incredibly tough," Rajendra wraps up.
For more information:
Rajendra Pandit Deore
ShreeKrishna IMPEX Ventures
Tel: +91 98 81 319 403
Email: [email protected]
