Namakkal Egg Exports Grind to a Halt Amid Israel-Iran Conflict, Daily Losses Estimated at Rs 5 Crore
The ongoing Israel-Iran war has brought egg exports from Namakkal, one of India's major production and trading hubs, to a complete standstill. Exporters are estimating a staggering total loss of approximately Rs 5 crore daily as the Middle East conflict disrupts supply chains and logistics.
Logistical Nightmare and Supply Chain Disruptions
Exporters report that shipments to Gulf countries, including the UAE, Oman, and Qatar, have stopped entirely. The closure of seaports and restrictions in airspace have interrupted normal cargo movement, blocking critical logistics routes. Dr PV Senthil, a Namakkal-based egg exporter and general secretary of the Livestock and Agri Farmers Trade Association, explained that with transport channels cut off, they cannot dispatch perishable goods like eggs, increasing spoilage risks and compounding losses across the entire supply chain from procurement to packing and freight.
Aiswarya Giri Rajkumar, CEO of table egg exporting company Kaveri’s Bio Proteins Private Limited, revealed that at least 10 million eggs were being exported daily to various Middle East countries before the conflict. "The entire egg exporting business came to a halt on March 1, a day after the war started," she stated, highlighting the immediate impact.
Price Collapse and Farmer Distress
The table egg rate in Namakkal has reduced drastically amid the export stoppage. The National Egg Coordination Committee (NECC), the egg rate fixation committee, fixed the rate at Rs 4.30 per egg on Tuesday. However, a senior NECC official noted that demand has also declined after the state government stopped procuring eggs for the school noon-meal scheme as annual exams began, leading to huge volumes of eggs being stocked in poultry farms.
Poultry farmer K Selvaraj alleged that egg traders are exploiting the situation, asking farmers to sell eggs at 80 paise less than the NECC rate. "The poultry farmers are forced to sell an egg for Rs 3.50 to avoid huge losses, while the production cost stands at Rs 4.50," he said, describing the severe financial pressure on producers.
Exporters Urge Government Intervention
Exporters have urgently called for central government intervention. They have requested the government to take up the issue through diplomatic channels with the US, Israel, and Iran to facilitate safe passage for ships carrying essential commodities, emphasizing the need for immediate action to resume trade.
Vegetable Exports from Trichy Also Affected
The Middle East conflict has similarly impacted vegetable and fruit exporters in Trichy. With flights to the Middle East from Trichy international airport cancelled for the fourth consecutive day on Tuesday, dozens of exporters are struggling to move consignments to the UAE and Qatar.
On average, Trichy airport handles 600 MT of freight monthly, about 20 MT daily. While exports to Singapore continue, UAE-bound shipments are affected, along with exports to the European market that use Dubai as a transit point. G Sathish Kumar, secretary of the Export Import Federation of Trichy, noted, "There is no other cost-effective alternative for us," underscoring the dependency on these routes.
Most exports from Trichy include vegetables, fruits, and flowers, with a significant portion targeting the Indian diaspora in Abu Dhabi, Dubai, and Sharjah. The disruption highlights the broader economic ripple effects of the geopolitical tensions in the region.
