Patna: Rising geopolitical tensions and ongoing conflicts across several regions are beginning to affect Bihar’s export sector, with traders involved in makhana and handicraft exports reporting higher freight costs and shipment delays.
Business organisations said Bihar exports significant quantities of makhana, spices, fruits, vegetables and handicraft products to international markets. However, increasing risks along key global maritime routes have disrupted supply chains.
Security concerns disrupt shipping routes
Exporters said security threats in the Red Sea and the Strait of Hormuz have forced several shipping companies to avoid traditional routes and instead reroute vessels through the Cape of Good Hope in southern Africa.
The longer route has led to a sharp rise in transportation costs and extended delivery timelines for exporters.
Neha Arya, director of an international export company, said Bihar exports around 15,000 to 20,000 tonnes of makhana annually, with an estimated trade value of Rs. 330 crore to Rs. 415 crore.
Freight costs rise sharply
Arya said the United States, Canada and the United Kingdom remain among the key international markets for Bihar’s makhana exports.
According to exporters, freight charges have increased by nearly two to two-and-a-half times in recent months. Delivery schedules are also being affected, with delays ranging between 15 and 30 days.
Traders said several previously confirmed export orders have also started facing disruptions due to the ongoing shipping challenges.
Pressure on makhana and handicraft sectors
Exporters said Bihar’s makhana industry has steadily strengthened its presence in global markets, but rising logistics costs have slowed fresh orders from overseas buyers.
The impact is also being felt in exports of Bhagalpur silk, Madhubani paintings and other handicraft products. Traders warned that prolonged disruptions could lead to a further decline in export orders and delays in payments.
Vivek Sah, Bihar chairperson of ASSOCHAM (the Associated Chambers of Commerce and Industry of India), said global tensions had already placed supply chains under pressure, and disruptions in shipping routes had further complicated the situation.
Trade bodies have urged the government to provide exporters with logistical support and assistance to help manage rising operational costs.
