Seafood exporters in Odisha take a big hit as trade shrinks by 30%
BHUBANESWAR: The escalating conflict in West Asia has pushed seafood exporters in the state to the edge, with many facing order cancellation and loss owing to supply chain disruptions and higher freight costs.
The tension in the Middle East has shrunk seafood exports from Odisha in some of the Gulf trade routes by 30 per cent, prompting suppliers to explore diversification plans to reduce dependence on the affected markets.
In view of the looming crisis, the Seafood Exporters’ Association of India (SEAI), Odisha Chapter has also sought financial assistance and policy relief along with infrastructure and value-addition support from the government through different schemes to navigate this uncertainty and prevent losses.
SEAI, Odisha chapter president Sangram Das said, “In several sectors, shipments are being delayed or temporarily halted because vessels are avoiding the affected sea routes and taking longer alternatives. Some exporters have even reported buyers asking to hold shipments or postpone deliveries until the situation stabilises, while in some cases, especially where goods are time-sensitive, orders have been cancelled midway or shipments remain stuck at ports.”
Odisha exports around 92,169 tonne of seafood annually. The value of exports stood at about Rs 4,668 crore in 2024-25. In the Gulf region, UAE is the largest importer, followed by Saudi Arabia, Oman, Qatar, Kuwait and Bahrain.
The SEAI Odisha president said shipments across Indian ports, including nearly $300 million worth of seafood exports are awaiting transport due to uncertainty in shipping lanes. “Freight cost has already increased and if the war continues beyond March 15, shipping lines have warned that charges would go up further by about 30 per cent. The container price, which was around $2,600 to $2,800, has already surged to around $3,000,” he said.
Seagull Maritime Exports Pvt Ltd managing director Jyoti Ranjan Mohanty said small exporters are the worst affected as they usually have less capital, making it difficult to handle large orders and manage delay in payments. He said three of their orders to Europe have already been cancelled owing to the conflict.
With seafood industry suffering economically, exporters said the impact has spreads across the entire chain including transporters, ice plants and cold storage units, packaging industries as well as export logistics companies. Fishermen and aquaculture farmers being the first link in the seafood supply chain, are also bearing this impact.
Das said around 48 per cent of companies are already fearing higher risk of non-payment, reflecting rising financial stress among importers. The association’s demands to the Centre include financial relief or incentives to offset additional tariffs, support for exporters facing higher duties and anti-dumping measures in overseas markets, and assistance to maintain competitiveness in major markets such as the US.