The escalating conflict in West Asia is severely impacting Bikaner’s renowned food export industry, leading to significant delays, soaring freight costs, and disruptions in the supply of popular snacks like bhujia and papad to crucial Gulf and European markets.
Key Points
- The West Asia conflict is causing significant delays and increased freight costs for Bikaner’s food exports, including popular snacks like bhujia and papad, and spices.
- Rising input costs, particularly a 20 per cent increase in edible oil prices, are severely impacting the production costs of Bikaneri namkeen and other snacks.
- Container movement has slowed dramatically, doubling shipment times from Bikaner to Gulf and European countries from approximately 30 to 60 days due to longer, safer routes.
- The disruption also affects the import of crucial raw materials such as palm oil and soybean, further increasing financial pressure on Bikaner traders.
- Uncertainty over delivery timelines and escalating freight charges are forcing Bikaner traders to re-evaluate their export strategies, with consignments worth crores currently stalled.
The ongoing conflict in West Asia has started to impact exporters in the Bikaner region, with shipments of popular food items, such as bhujia, papad and spices to Gulf and European countries facing severe disruptions, traders said.
Bikaner, known for its namkeen industry, exports large quantities of snacks, spices and other products to countries in the Gulf region and Europe.
Rising Costs and Logistics Challenges
However, exporters said, the war has led to delays, rising freight costs and container shortages, affecting exports and imports. Ashish Agarwal, a namkeen trader associated with the Bhikharam group, said escalating input and logistics costs are hurting the industry.
“Freight charges have increased sharply due to the war, and raw material prices are also rising.
“The cost of edible oil has gone up by around 20 per cent in the last one month, which is directly impacting production,” he said.
Exporters said container movement has slowed significantly, with shipments that earlier took around 30 days now taking up to 60 days due to longer and safer routes being taken amid the conflict.
Rajesh Jindal, an exporter, said both incoming and outgoing consignments are facing delays, increasing financial pressure on traders.
“Goods coming in and going out are both getting delayed, and costs have increased substantially.
“Demand for Bikaneri snacks and spices remains strong in Arab countries, but supply chain disruptions are causing losses,” he said.
Impact on Raw Materials and Future Strategies
Apart from exports, import of key raw materials, such as palm oil and soybean, has also been affected, traders said. Rising petroleum prices have further pushed packaging costs up by 30-40 per cent, adding to the burden on manufacturers.
Exporters said the current period is crucial for the namkeen trade, as preparations for peak export season usually begin around this time. However, uncertainty over delivery timelines and increased freight charges has forced traders to rethink their strategies.
According to industry estimates, around 15 to 20 containers of bhujia, papad and namkeen are exported every month from Bikaner, along with nearly 60 containers of other goods.
At present, much of this trade has come to a halt, with consignments worth crores reportedly stuck at ports or in transit.
Shipments from Bikaner are routed through sea to many countries, such as Iran, Iraq, Oman, the UAE, Qatar and Bahrain, as well as European nations, including the UK, Germany, France, Italy and Spain.
Traders warned that if the situation persists, it could have a significant impact on the city’s export-driven economy, with businesses already grappling with rising costs and delayed payments.
