India's poultry exports are gradually recovering from the standstill experienced during April-May 2026 due to the war in West Asia, but face significant headwinds from abnormally high freight costs. According to reports from The Hindu BusinessLine, exports had been brought almost to a standstill in April when shipping services were disrupted by the conflict. Around 120-125 containers were stuck but were cleared by the end of May or early June. Exports gradually recovered to about 25-30% of normal levels in June and July, and have since risen by about 10 percentage points each month to reach around 50-55% of normal levels.
The recovery is being severely impacted by freight rate increases that have made shipping economically unviable for exporters. As reported by The Hindu BusinessLine, shipping costs from India to the UAE have risen from around $1,900 per container to around $9,000 currently, representing an increase of more than four-fold. Valsan Parameswaran, Secretary of the All India Poultry Product Exporters Association, stated that exporters are not in a comfortable situation due to these elevated costs. The UAE remains the biggest market for Indian poultry products, mainly eggs, with overall egg exports estimated at around ₹2,000 crore last year.
Industry representatives are urging the government to intervene in the shipping crisis. According to reports from The Hindu BusinessLine, Parameswaran requested the government to initiate dialogue with shipping lines to bring down costs and increase sailings. The association also urged the government to provide some form of subsidy to offset the high freight costs. Exporters are maintaining shipments despite absorbing losses from high freight rates to keep the trade chain intact, maintain cash flows, keep infrastructure and workforce operational, and protect market share.
The recovery is occurring against a backdrop of increased competition from Turkey in the region, adding to exporters' concerns. As reported by The Hindu BusinessLine, demand is currently mixed, and exporters do not see any significant growth yet, though the market is showing some signs of recovery. The Namakkal-Erode region in Tamil Nadu serves as the country's major egg-exporting hub, accounting for about 99% of shipments, with approximately 11-12 approved compartment farms in the Namakkal region producing eggs for the export market.
