TIRUPATI: Shipments of processed mango pulp to the Gulf countries have come to a halt mid-sea with several ports operating below capacity due to West Asia conflict. As a result, over 90% of pulp stocks remain stuck in godowns and port warehouses, bringing industry exports from Chittoor district to a standstill.
The current mango season offers little optimism. Processing unit owners say they are unable to procure mango fruit from farmers this year because payments from foreign importers have not yet been received. Hence, the mango pulp industry in Chittoor district, known as a global hub for processed mango products, is facing a severe crisis.
According to industry representatives, more than 3 lakh tonnes of mango pulp is currently stranded in godowns and port warehouses. Meanwhile, container companies have informed mango pulp unit owners that they need to pay a war risk surcharge of $2,000 per container to ship pulp to the Gulf countries.
In addition, insurance companies have increased their charges by three to four times compared to normal rates. Consequently, export profits have declined sharply. For each 7.4 tonne container of mango pulp exports, processing units are now earning only minimal profits. To clear existing stock from godowns, many units are trying to export pulp at significantly reduced prices.
Generally, 6 to 7 lakh tonnes of mangoes are procured from farmers during the season, producing about 3 to 4 lakh tonnes of pulp, mainly from Totapuri variety. About 70% of the total pulp is exported to the Gulf and European countries.
‘Cost of logistics rose due to West Asia crisis’
The remaining 30% of pulp is sold in the domestic market. Currently, pulp is being exported in 215 kg six-layer aseptic bags instead of the older OTS tins to meet international quality standards.
Speaking to TNIE, Kattamanchi Govardhan Bobby, chairman of All India Food Processors Association (South Zone), said, “India is the world leading producer and exporter of mango pulp with nearly 70% of exports originating from Chittoor alone. The West Asia crisis has caused a sharp increase in logistics costs, severely affecting profit margins of exporters.”
He also pointed out that the mango pulp exports to the European countries have also been hit due to Houthi attacks on commercial vessels in the Red Sea. The financial impact of the West Asia conflict on the mango pulp industry is estimated at Rs 750 crore. With export payments from foreign buyers being delayed, processing units are struggling to maintain cash flow.
This has directly affected their ability to procure mangoes from farmers during the current season, creating a ripple effect across the supply chain. The association has written to the government seeking immediate intervention and support to help the mango pulp industry overcome the crisis, he said.
Farmers, who depend heavily on the mango pulp industry, are now facing uncertainty as the demand for fruit from processing units has declined.