West Asian conflict weighs heavily on Kerala's exports

The ongoing conflict in West Asia is adversely affecting Kerala's export capacity due to a sharp increase in air freight rates. According to a report by The Hindu, this sudden spike in transportation costs has made Kerala's products less competitive in foreign markets, resulting in foreign buyers showing reluctance to place orders.

This situation is directly impacting spices, coir, perishables, vegetables, rubber, and rubber products exported from Kerala. Due to rising costs, a significant decline has been observed in the volume of air cargo handled by the state's international airports during the last quarter of the current financial year.

Statistical data shows that during the July-September quarter of 2026, the total cargo exported through Kerala's four international airports was 27,425 tonnes. In comparison, this volume was 26,416.7 tonnes during the same period of the previous financial year. Thus, only a marginal increase of 3.8% was recorded in exports.

It is noteworthy that this sector traditionally sees growth between 5% to 10% year-on-year, but due to the current conflict and rising freight costs, this growth rate has significantly decreased. This increase in air freight rates is becoming a major challenge for exporters.

Kerala's international airports play a vital role in transporting goods from various parts of the state to the global market. Exports conducted through these airports are crucial for the state's economy, but changes in global logistics costs caused by geopolitical tensions in West Asia have hindered this process.