CHENNAI: The ongoing West Asia war has disrupted exports of Kovilpatti’s famed peanut candy to Gulf countries, leaving manufacturers with unsold stock worth several crores and raising concerns over the livelihoods of thousands of workers in the industry.
Kovilpatti peanut candy has long enjoyed a special reputation in the market. After receiving the Geographical Indication (GI) tag in 2020, its popularity grew significantly, leading to increased sales across India as well as in several foreign countries.
Currently, around 120 peanut candy manufacturing units operate in and around Kovilpatti, providing employment to more than 20,000 workers.
Industry sources say that since the GI recognition, large quantities of Kovilpatti peanut candy have been exported daily to overseas markets. Nearly 70 percent of the exports are sent to Gulf countries, including Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain. The products are usually shipped through both air and sea routes.
Manufacturers say the ongoing war in West Asia have disrupted export logistics to the Gulf region. As a result, shipments of Kovilpatti peanut candy have reportedly come to a halt for more than 10 days, leading to a build-up of stock worth several crores of rupees.
Kannan, secretary of the Kovilpatti Peanut Candy Manufacturers and Traders Association, said most exports are directed to Gulf countries, and the current situation has forced exporters to pause shipments.
“Orders that had already been placed by overseas buyers are now being cancelled. This has created a difficult situation for manufacturers and could bring production to a standstill,” he said.
He also noted that the cost of packaging materials such as PP covers and plastic jars has increased due to difficulties in the availability of petroleum-based products. If the situation continues, the livelihoods of thousands of workers dependent on the industry could be affected, he added.
Manufacturers also pointed out that the industry had already been struggling with rising peanut prices and was only beginning to recover when the export disruption occurred.
Apart from peanut candy, several other sweet and savoury snacks produced in Kovilpatti are also exported along with the candy. With exports currently stalled, workers in the sector fear a significant impact on their livelihoods.