Gulf crisis stalls tender coconut exports from Pollachi as ocean freight rates triple

COIMBATORE: Tender coconut exports from Pollachi, one of India’s key hubs, have come to a near standstill for almost two months, with escalating freight costs linked to the Iran–Israel conflict disrupting the supply chain.

Exporters say the sudden spike in shipping costs and logistical uncertainties has made overseas trade unviable, forcing them to cancel orders despite steady international demand.

“For a 25-tonne consignment to London, shipment costs have jumped from Rs 1.60 lakh to Rs 4.50 lakh within a month, which is almost triple. Our buyers are still placing orders, but given the uncertainty, they prefer to pay only after delivery. That’s a risk we cannot afford, so many shipments have been cancelled,” said M Anandaraj of Susmi Exports in Pollachi.

The crisis is compounded by disruptions along key maritime routes. Shipments through the Suez Canal, which typically take around 18 days to reach London, are now delayed, while alternative routes stretch transit times to nearly a month. Similarly, consignments to Dubai that earlier took a week are now taking over 15 days due to rerouting amid tensions at the Strait of Hormuz.

As a result, exports to Gulf countries, including Saudi Arabia and Kuwait, have been completely halted. Shipments to major markets such as London, Germany, Mauritius, Japan, Kenya, Iran, Canada and Singapore have also stopped. “Even though enquiries continue from Dubai, exports have remained suspended for nearly two months,” Anandaraj added.

Back home, exporters are grappling with a severe labour shortage, as many workers were so far engaged in election-related activities. This has disrupted harvesting, de-husking, processing and packaging operations.

The inherently short shelf life of tender coconuts, about a week, further complicates exports. Maintaining quality requires rapid processing and cold storage, while delays in transit are taking a huge toll.

Srinivasan AE, the president of the Anaimalai Tender Coconut Growers Association, noted that input costs have also surged. “Fertiliser prices have risen after the war, and labour shortages persist. Naturally, prices are increasing,” he said.

Despite the export slump, domestic demand remains strong, providing some relief to growers.

HEALTHY BUT PRICEY

• Pollachi, India's premier hub for tender coconut production and export

• Coconut farms cover 86,800 hectares in Coimbatore

• Peak tender coconut season is from March to mid-June

• Pollachi coconuts are known for their sweet taste and high water content

• Farm gate price stands at Rs 49, while retail price is Rs 60 and above

• Yield decreased up to 25 per cent

• Yield hit by whitefly, root wilt disease and prolonged dry spell

• Labour shortage, fertiliser costs rise

• Exports to Gulf countries, London, Germany, Mauritius, Japan, Kenya, Iran, Canada and Singapore stalled

• Alternative maritime routes stretch transit times to nearly a month