Poultry exporters seek government intervention as shipping costs to the UAE jump sharply, while exports remain well below normal levels.
Highlights
- India’s poultry exports are gradually recovering after disruptions caused by the war in West Asia.
- Exports fell almost to a standstill in April and recovered to 25–30% of normal levels in June-July.
- Shipments are currently around 50–55% of normal levels.
- Freight cost from India to the UAE has surged from about $1,900 to $9,000 per container.
New Delhi: India’s poultry exports are gradually recovering after being severely disrupted by the war in West Asia, but unusually high freight costs and growing competition from Turkiye continue to put pressure on exporters’ margins.
According to the All India Poultry Product Exporters Association, demand remains mixed and exporters are yet to see significant growth, although the market has started showing signs of recovery.
Shipping disruptions caused by the West Asia conflict had brought poultry exports almost to a standstill in April. Around 120–125 containers were stuck during the disruption, though these were eventually cleared by the end of May or early June.
Exports recovered to around 25–30% of normal levels during June and July. Since then, shipments have improved by roughly 10 percentage points each month and currently stand at around 50–55% of normal levels, according to the association.
However, freight costs remain a major challenge. Shipping expenses from India to the UAE have increased more than four-fold, rising from around $1,900 per container to approximately $9,000 currently.
Valsan Parameswaran, Secretary of the All India Poultry Product Exporters Association, said exporters have requested the government to intervene and initiate discussions with shipping lines to reduce freight rates and increase the number of sailings. The industry has also sought government support or subsidies to offset elevated freight costs.
Despite taking losses due to expensive shipping, exporters are continuing shipments to maintain trade links, cash flows, infrastructure, workforce and market share.
The UAE is currently the largest overseas market for Indian poultry products, particularly eggs. The Namakkal-Erode region in Tamil Nadu accounts for around 99% of egg export shipments, according to the report. Some farms in Odisha have also received approvals, though logistics remain a challenge.
The industry believes maintaining exports also supports domestic demand and prices. India’s overall egg exports were estimated at around ₹2,000 crore last year.
