Bikaner Bhujia May Get Pricier: US-Iran War Disrupts Namkeen Exports To Gulf, Europe

(MENAFN- Live Mint) As the United States, Israel-Iran war continues unabated, without any let up from any side, its ripple effects have now reached the world-renowned Bikaner's namkeen industry as a large portion of exports, that go to Gilf countries and Europe, have slowed down. The manufacturers now fear that the economic instability caused by the US-Iran war in West Asia may increase the costs of the products.

Rajasthan's Bikaner namkeen industry is facing significant challenges with disruption in shipping routes and increased freight costs. According to the PTI, the manufacturers are facing delays in delivery of their products due to the disruptions, significantly increasing their costs.

Bikaner namkeen industry is famous for famous for manufacturing products like bhujia, papad and sev, among others.

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Exporters now say that the war has led to container shortages, which has not only impacted exports, but imports are also getting affected.

Ashish Agarwal, a namkeen trader associated with the Bhikharam group, told PTI that escalating input and logistics costs are hurting the industry.

He said,“Freight charges have increased sharply due to the war, and raw material prices are also rising. The cost of edible oil has gone up by around 20 per cent in the last one month, which is directly impacting production.”

How the war has impacted namkeen industry?

Speaking of the impact of the war, exporters said container movement has slowed significantly. They said the shipments that used to take 30 days, now take up to 60 days or longer to reach their export destination.

Rajesh Jindal, an exporter, said both incoming and outgoing consignments are facing delays, increasing financial pressure on traders.

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"Goods coming in and going out are both getting delayed, and costs have increased substantially. Demand for Bikaneri snacks and spices remains strong in Arab countries, but supply chain disruptions are causing losses," he said.

Apart from exports, import of key raw materials, such as palm oil and soybean, has also been affected, traders said. Not just longer routes, but rising petroleum prices have also increased the packaging costs by 30-40 per cent.

Shipments from Bikaner are routed through sea to many countries, such as Iran, Iraq, Oman, the UAE, Qatar and Bahrain, as well as European nations, including the UK, Germany, France, Italy and Spain.

Traders warned that if the situation persists, it could have a significant impact on the city's export-driven economy, with businesses already grappling with rising costs and delayed payments.

(With agency inputs)

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