Red Sea threat looms large over grapes exports

What Shinde is referring to is the ongoing escalation of attacks by Yemen-based Houthi rebels on sea vessels along its coast. Backed by Iran, these rebels have attacked cargo vessels using drones and rocket launchers, which has disrupted the freight corridor. The attacks are in retaliation of the ongoing escalation of violence between Israel and Hamas in the Middle East. For freight vessles, the Red Sea route is the fastest and most convenient, which saves both time and fuel.

Indian exporters eye the European and US markets given the better returns from there. Till Tuesday, 1,226 containters (each carrying around 22 tonnes of grapes) have been exported from India, as compared to the 6,796 containers which were shipped out on the same day last year. The season for exports of grapes start mostly from December-January and continues till March post which it tapers down.

Exports normally peak in February and last till mid-March. Shinde said they are worried if the logistics blockade do not resolve before that.

Ironically, the blockade comes as the country was preparing for a good export season. India on an average exports around 2.5-2.6 lakh tonnes of grapes which earns the country anything between $315-320 million. Exports had peaked in 2018-19 with the total exports being valued at $335 million. Shinde said they had hoped that this year exports would have touched the high of 2018-19 fiscal. “As of now quality produce is available. However if the logistics bottleneck persist, exports would be hit,” he said.