Middle East Impact: Over 1,000 Food Containers Stuck At Mumbai's Jawaharlal Nehru Port

Mumbai's Jawaharlal Nehru Port Trust is facing the heat of the ongoing war in the Middle East region. As tensions between the Arab countries, Israel, Iran, and the US grow, disruptions of maritime vessel movements have also gotten consequentially affected, as several containers are stranded at the port.

Currently, there are more than 1,000 export containers stranded at the JNPT. These containers include consignments of grapes, onions, papaya, etc.

Amongst the stranded containers, 150 contain onions from Nashik. Reports suggest that each container carries an average of 29-30 tonnes of onion, taking the total amount of stranded onions to 5,400 tonnes.

The consignments were primarily meant for Gulf countries, most of them routed through Dubai. However, due to the prevailing war-like situation, the Dubai market has reportedly been shut temporarily. The story is not very different for Indian containers, which had already reached the gulf, as 370 containers that had already reached Dubai are also said to be stuck there. The same route is used for exports to certain European countries, which have now also been affected.

The biggest concern is for the exporters dealing with perishable goods. These exporters are facing mounting financial pressure.

Containers, which are currently parked at the port and kept plugged in to maintain refrigeration, are costing approximately Rs 8,000 per container per day. If the disruption continues, exporters may be forced to offload the goods at the port, incurring an additional expense of Rs 5,000-6,000 per container. Industry representatives warn that if clarity does not emerge within the next two to three days, consignments may have to be recalled to prevent spoilage.

The export halt is also beginning to impact the domestic market. Prices of onions and other produce, already under pressure, are likely to decline further due to increased local supply. Farmers describe the situation as a "double blow", rising production costs on one hand and export uncertainty on the other, now compounded by a complete halt in overseas shipments.

The logistics sector is also grappling with uncertainty. Reports indicate a rise in marine insurance premiums, higher freight rates, and payment-related challenges caused by unstable shipping routes. Exporters have also cautioned against misleading offers from middlemen claiming to provide alternative routes or quick clearance of goods.

Meanwhile, the Horticulture Produce Exporters Association has urged the Agriculture and Processed Food Products Export Development Authority (APEDA) to ensure that the government bears the additional costs of parking and plugging in containers stranded at the port. There have also been demands for the central government to explore alternative trade routes and announce a special financial relief package for affected farmers and exporters.

For now, exporters are closely monitoring the situation, hoping for clarity within the next 48 to 72 hours. However, if tensions in Middle East do not ease soon, thousands of tonnes of agricultural produce stranded at JNPT could face serious financial distress.