Indian mango exporters face soaring air freight costs that exceed mango prices, impacting profit margins despite robust exports.
Despite strong mango exports, Indian exporters are facing challenges that are squeezing their profit margins. The surge in freight expenses, especially for air shipments, has emerged as a critical issue. Exporters note that air freight costs now exceed the price of mangoes themselves, driven up by the Red Sea crisis, container shortages, vessel bottlenecks, and cargo congestion, prompting a shift from sea to air routes.
Explaining the predicament, one exporter highlighted, “This year, due to the Red Sea crisis and logistical disruptions, air freight charges have significantly spiked.” Consequently, shipping costs have soared to Rs 200–250 per kilogram plus 18 percent GST, surpassing mango prices. This surge has pushed mango prices in the US market to $13–14 per kilogram, a 30–35 percent increase compared to last year.
Export data shows a decline in mango shipments, with 545 metric tons shipped from April 1 to June 18, down from 686 MT in the previous season. Gujarat Agro Limited’s irradiation center managed to export 322 MT of mangoes this season, slightly up from 305 MT in 2023. Anticipation is high for the upcoming Kutchi kesar variety, expected to bolster Gujarat’s export numbers.
