The Hindu : Kerala / Thiruvananthapuram News : Export of perishables to be suspended from midnight

Online edition of India's National Newspaper
Saturday, Oct 27, 2007
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Kerala

Kerala - Thiruvananthapuram

Export of perishables to be suspended from midnight

Staff Reporter

Financial crisis due to a strong rupee prompts decision

Thiruvananthapuram: Export of fresh fruits and vegetables to various destinations in West Asia from the three airports in the State will come to a standstill from midnight on Friday.

The exporters based in Thiruvananthapuram, Kochi, and Karipur airports have resorted to this step in view of the severe financial crisis faced by them due to the steep fall in dollar value and appreciation of the rupee and spiralling prices of perishables.

Exporters who send shipments to destinations in the Middle East and other countries against realisation of dollar had been incurring heavy loss as dollar rates declined.

No cargo bookings had been made on flights of Emirates, Kuwait Airways, Air India, Air India Express, Qatar Airways and Oman Air scheduled to depart from the capital in the wee hours of Saturday. Secretary, Agricultural Products and Processed Food Exporters Association (APPEXA), Dil Koshy, said the freight rates, which was about Rs.38-40 per kg including security and fuel surcharges for perishables, had come as a setback for exporters from the State and was unaffordable.

Of the 95 per cent of fresh fruits and vegetables exported to various destinations in Middle East through Thiruvananthapuram International Airport daily, 80 per cent was procured from adjoining Kanyakumari and Tirunelveli districts. Of the estimated 80 tonnes of fresh fruits and vegetables exported on a daily basis from the three airports of the State, 60 tonnes was exported from Thiruvananthapuram alone. Thiruvananthapuram was the largest port in the country for the export of perishables. As many as 15 tonnes were exported from Kochi and nearly 10 tonnes from Kozhikode. The annual foreign exchange earnings received by Inda from the export came to the tune of Rs.200 crores.

Exports were made through passenger flights and the proposal for exclusive cargo flights to the Middle East was still on paper. Lack of incoming cargo was the main handicap for introducing freighters.

About 10,000 farmers in Kerala and Tamilnadu would be badly hit by this decison. Increase in export price or a decrease in freight charges were cited as solutions to the problem.

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