Freight costs eat into mango exporters' profits | - Times of India

Source: The Times of India

Ahmedabad: While mango exports remain robust despite low yields, exporters of the king of fruits face logistical nightmares. Steep increases in freight costs have eroded their profit margins. Exporters told TOI that air freight costs per kilogram work out to double the cost of the mangoes themselves.

"This year, due to the Red Sea crisis, container and vessel shortages, cargo congestion and diversion of shipments from sea to air, air freight charges have risen substantially.Freight costs for mango exports have doubled from last year, causing the retail price of mangoes to rise in international markets," said Akash Mandaviya, a mango exporter. While the cost of mangoes is about Rs 120 a kilogram, freight costs have increased to Rs 200-250 per kilogram plus 18% GST, making shipping cost more than the actual product. "Mangoes are thus retailing for $13-14 a kilogram (Rs 1,100-1,200) in the US market. This is about 30-35% higher than last year," said a mango exporter on condition of anonymity.

Estimates from mango exporters show that about 545 metric tonnes (MT) was exported from April 1 to June 18. This is lower than 686 MT exported in 2023-24.

"The irradiation centre run by Gujarat Agro Limited has exported 322 MT of mangoes this season, compared to 305 MT in 2023. We are waiting for supply of the Kutchi kesar variety, which will increase the exports figure from Gujarat," said D H Shah, managing director, Gujarat Agro Limited.

The Talala market yard in Gir Somnath district is a mango trading hub, from where the fruit is supplied across India and exported to Canada, Australia, Europe, UK and the US. Customs clearing agents said that pallets are in short supply this season, which has also hampered mango exports.