Indian poultry exporters are struggling as logistics costs to the UAE have jumped from $1,900 to $9,000 per container. With export volumes at roughly half their historical levels and stiff competition from Turkey, the industry is facing thin margins and is now seeking government intervention.
Indian poultry exporters, primarily based in the Namakkal-Erode region of Tamil Nadu, are facing a difficult period as freight costs for international shipments have surged four-fold. The region, which contributes approximately 99% of India’s total egg exports, is struggling to maintain its competitive edge in key Middle Eastern markets like the UAE. Shipping expenses for a single container have spiked to $9,000 from the earlier $1,900, creating an immediate and severe strain on the profitability of these businesses.
This logistics crisis comes at a time when export volumes are still recovering from disruptions during the April-May period. While shipments have managed to reach about 50% to 55% of historical levels, the recovery is fragile. Poultry products have a limited shelf life and are highly price-sensitive, meaning the massive hike in shipping costs makes it difficult for Indian producers to price their goods competitively against international rivals.
One of the most significant challenges for the sector is the rising competition from Turkish poultry producers, who are increasingly capturing market share in the Middle East. Because Turkish exporters often face different logistical and trade dynamics, they are currently better positioned to offer lower prices, leaving Indian exporters in a difficult position. Indian businesses now face a choice between absorbing these high shipping costs to keep market share or losing their export presence, which they have built over many years.
For investors and industry observers, the situation has broader implications for the domestic agricultural market. The poultry sector in India is highly fragmented, with many exporters operating as small or medium-sized enterprises with thin profit margins. If export volumes remain low due to high shipping costs, it may create a supply glut within the domestic market. A sudden increase in the supply of eggs and poultry in local markets could potentially lead to a sharp decline in domestic prices, impacting the income of thousands of poultry farmers.
The All India Poultry Product Exporters Association has expressed concern that without immediate government intervention, the global competitiveness of Indian poultry could decline permanently. Industry representatives are now urging officials to open a dialogue with international shipping lines to reduce transit costs and improve sailing frequencies. They are also seeking targeted subsidy programs to offset the logistical burden and prevent further erosion of market share. The key monitorable for the coming months will be whether the government provides direct logistical support and if the shipping cost volatility stabilizes, which will determine if export volumes can return to normal levels.