West Asia crisis disrupts Byadagi chilli exports, hikes shipping costs

Haveri: The West Asia crisis is intensifying day by day, with the United States, along with Israel, attacking Iran and Iran launching counterattacks, affecting Gulf countries and nearly halting large container ships from passing through the Strait of Hormuz. This has impacted the global market for the renowned Byadagi chilli in the district.Some containers are stranded at Mumbai and Chennai ports, leaving chilli worth hundreds of crores stuck. Crores owed to Byadagi traders from Iran have not been paid, putting Byadagi chilli traders in a difficult situation, according to trader Shivanand Mallanagoudra. The export of the world-famous Byadagi chilli to Gulf countries has completely stopped, while the cost of exporting chilli to other countries has increased, traders said.The chilli, used in the preparation of spices and cosmetics, was exported to Malaysia, Indonesia, Bali, Thailand, and Singapore, but the cost of renting containers for exporting chilli to Iran, Israel, and the US has increased. Traders say if this continues, the price of chilli brought in by farmers will decrease."Every month, thousands of tonnes of chilli powder are exported to Gulf countries. Exports have stopped for the past 15 days. I am owed Rs 10 crore. We are in trouble due to the war. Last time, excessive rain increased the supplly of Byadagi chilli in the market, leading to a drop in prices, and reduced quality. This year, chilli farmers grew fewer chillies, and initially it fetched a good price, with many farmers who suffered losses last year, switching to other crops," said SR Patil, a trader.Basavaraj Benni, an owner of a transport company, said the shortage in supply caused prices to rise, but due to the war, traders have to pay more to ship chilli to West Asia. "If they relied on farmers to bear these costs, the price of chilli will decrease. We hope the war will end quickly so that the market can function as usual," he added.Raju Morageri, the secretary of the traders' association, said, "We do not want this war. We hope it stops as soon as possible. If petroleum prices rise, it will affect transportation costs. If transportation costs are adjusted, the prices of farmers' crops will decrease, impacting both farmers and traders. The shipments to the Middle East have stopped. There is a shortage of containers. Previously, the rent for a container was $1,800, but now it has reached $3,500. In the export business, we fix the price per kilogram. It is not possible to cover transport charges within this. Therefore, prices have to go down. If rental costs increase, how will farmers bring their produce to the market? How will buyers send it abroad? This will lead to a decrease in crop prices."