How West Asia conflict is affecting India's snack exports
What's the story
The ongoing conflict in West Asia is taking a toll on exporters from Bikaner, a major hub for namkeen production. Shipments of popular snacks such as bhujia and papad to Gulf and European countries are facing major disruptions. Traders have reported that the war has resulted in delays, increased freight costs, and container shortages, affecting both exports and imports.
Impact on trade
Rising input and logistics costs hurting industry
Ashish Agarwal, a namkeen trader from the Bhikharam group, said that rising input and logistics costs are hurting the industry. He noted that freight charges have gone up sharply due to the war, while raw material prices are also increasing. The cost of edible oil has gone up by around 20% in the last one month, which is directly impacting production, he said.
Shipping challenges
Supply chain disruptions causing losses
Rajesh Jindal, another exporter, said both incoming and outgoing consignments are facing delays due to the ongoing conflict. He noted that these delays are putting additional financial pressure on traders. Goods coming in and going out are both getting delayed, and costs have increased substantially, Jindal said, while stressing that supply chain disruptions are causing losses despite strong demand for Bikaneri snacks in Arab countries.
Supply chain impact
Exporters rethink strategies
The ongoing conflict has also affected the import of key raw materials such as palm oil and soybean, traders have said. Rising petroleum prices have further pushed packaging costs up by 30-40%, adding to the burden on manufacturers. Exporters say this period is crucial for the namkeen trade, as preparations for peak export season usually begin around now, but uncertainty over delivery timelines and increased freight charges are forcing traders to rethink their strategies.
Economic implications
Traders warn of impact on export-driven economy
Industry estimates suggest that some 15-20 containers of bhujia, papad, and namkeen are exported every month from Bikaner, along with almost 60 containers of other goods. However, much of this trade has come to a standstill now, with consignments worth crores reportedly stuck at ports or in transit. Traders have warned that if the situation continues, it could severely impact the city's export-driven economy which is already struggling with rising costs and delayed payments.