As the war between the United States, Israel and Iran continues unabated, with no let-up from either side, its ripple effects have now reached the world-renowned Bikaner namkeen industry, as much of the exports that go to Gilf countries and Europe have slowed down. Manufacturers are now worried that economic instability caused by the US-Iran war in West Asia may increase the cost of products.
Rajasthan’s Bikaner namkeen industry faces significant challenges with disruption of shipping routes and increased transport costs. According to PTI, due to the outages, manufacturers are facing delays in the supply of their products, which is significantly increasing their costs.
Bikaner namkeen industry is famous for manufacturing products like bhujia, papad and sev among others.
Exporters now say the war has led to a shortage of containers, affecting not only exports but also imports.
Ashish Agarwal, a namkeen trader associated with the Bhikharam group, told PTI that escalating input and logistics costs are hurting the industry.
He said, “Transport charges have increased sharply due to the war and raw material prices are also rising. The price of edible oil has increased by about 20 percent in the last month, which has a direct impact on production.”
How did the war affect the namkeen industry?
Talking about the impact of the war, exporters said that the movement of containers has slowed down significantly. They said shipments that used to take 30 days are now taking up to 60 days or more to reach their destination.
Exporter Rajesh Jindal said both inbound and outbound shipments are facing delays, adding to financial pressure on traders.
“Goods arriving and departing are 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.
Besides exports, imports of key raw materials such as palm oil and soybeans were also affected, traders said. Not only longer routes, but rising oil prices have also increased packaging costs by 30-40 percent.
Shipments from Bikaner are routed by sea to many countries such as Iran, Iraq, Oman, United Arab Emirates, Qatar and Bahrain as well as to European countries including the United Kingdom, Germany, France, Italy and Spain.
Traders have warned that if the situation persists, it could have a significant impact on the city’s export-led economy, where businesses are already struggling with rising costs and late payments.
