AIAI & WTC Mumbai Appeal for Interest Subvention and Freight Subsidy Amid Global Supply Chain Disruptions Impacting India’s Perishable Agri Export Sector
Dr. Vijay Kalantri, President, All India Association of Industries and Chairman, World Trade Center Mumbai.
Mumbai, 10 March 2026: The All India Association of Industries (AIAI) and World Trade Center Mumbai have appealed for attention to the growing impact of global geopolitical tensions and supply chain disruptions on India’s exports of perishable agricultural products, including dairy items, fruits, vegetables and other agri-food commodities, and have called for interest subvention and freight subsidy to combat the present crisis.
Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) and Chairman, World Trade Center Mumbai, said, “India’s exports of agricultural and processed food products are valued at over USD 50 billion annually, with dairy exports estimated at around USD 500 million. A significant share of these exports consists of perishable and time-sensitive products destined for markets in the Middle East, Europe and Asia, which rely heavily on stable maritime connectivity. However, recent supply chain disruptions and rising freight costs have increased logistics expenses, placing pressure on small and medium-sized exporters, as delays in transit can directly affect product quality, competitiveness and export margins.”
Dr. Kalantri further emphasized, “India’s exports of agri-food and other perishable products such as dairy items, fruits, vegetables and processed food are highly time-sensitive and depend on efficient logistics and reliable shipping connectivity to reach international markets without affecting their quality and shelf life. Ongoing geopolitical tensions and disruptions in global shipping routes are therefore creating growing challenges for exporters dealing with perishable goods. Industry estimates suggest that freight and logistics costs on certain routes have increased by nearly 40 percent or more in recent times, placing additional pressure on exporters of perishable products.”
He further added, “The current disruptions in global supply chains may continue for some time, and even if the ongoing geopolitical tensions or conflict situations subside, their after-effects on logistics and trade could persist. Therefore, policy support should be designed in a way that sustains exporters over the coming period and helps them manage the long-term impact of these disruptions. Strengthening logistics connectivity, providing freight support, enhancing subsidies and improving cold-chain infrastructure will be important to maintain the competitiveness of India’s perishable agri exports in global markets.”
All India Association of Industries (AIAI) ant theWTC Mumbai the emphasized the need for timely government intervention to mitigate the impact of rising logistics costs and ensure that India’s agriculture and perishable export sector remains competitive in global markets.
Regards,
Sangeeta Jain
Senior Director
All India Association of Industries (AIAI)