West Asia conflict hurts supply of Bikaneri Bhujia, snacks to Gulf and European countries

The Slate Bureau

Jaipur: The ongoing conflict in West Asia is having an impact on export of  popular

snacks from the Bikaner region, limiting food choices of people in the Gulf and

several European countries which import Bikaneri snacks, bhujia, papad and

spices.

News agency PTI reported that export from the region which mainly dealt with perishable goods with a shelf life was facing severe disruptions.

There is a growing concern over the conflict affecting overall exports from India. If the West Asia conflict  continues, India's exports to other parts of the world will be impacted, Central Commerce Secretary Rajesh Agrawal said on Saturday.

Indian exports during the last financial year were expected to remain on a positive trajectory despite the crisis, he added. Addressing a press conference on the sidelines of 'Chintan Shivir - Scaling Up Pharma Exports', Agrawal said that because of the West Asia crisis, there was definitely an impact last month on both imports and exports, as energy is a major part of the Indian import market.

"West Asia is also an important market. Around 12-13 per cent of our exports go to the region. So, that will directly get impacted. And if it goes on for long, maybe our exports to other parts of the world will also get impacted as some of the value chains will rotate back. We are cognizant of it,” the official told reporters.

The economy of Bikaner region dealing in perishables is already facing the brunt. Bikaner exports large quantities of snacks, spices and other products to countries in the Gulf region and Europe.

The delays, rising freight costs and container shortages due to the ongoing conflict

has had an impact on 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.

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.

The war is likely have a long term impact. 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.

(With inputs from PTI)