Freight surge squeezes Indian poultry exporters despite UAE shipment recovery

Indian poultry exports to the UAE have recovered to 50-55% of normal levels after April-May disruption, but container freight has risen from about $1,900 to $9,000. Exporters say elevated logistics costs and Turkish competition are eroding margins and seek government support.

— Source publishedThu, 17 Sept, 2026, 19:27 IST·First seen Thu, 17 Sept, 2026, 19:31 IST·Source BL · Consumer & Economy

What happened

All India Poultry Product Exporters Association · Indian poultry exports to the UAE are recovering after West Asia war-related disruption, but freight costs

Key facts

  • Freight costs to UAE rose from around $1,900 to around $9,000 per container
  • Exports fell to 25-30% of normal levels in June-July
  • Exports have recovered to around 50-55% of normal levels
  • Around 120-125 containers were stranded during April-May
  • Namakkal-Erode accounts for about 99% of egg-export shipments
  • India has about 11-12 approved compartment farms in Namakkal
  • Overall egg exports were estimated at around ₹2,000 crore last year

Why this matters

The disruption highlights value in partnerships or assets that secure logistics capacity, cold-chain efficiency and differentiated access to Gulf markets.

What to watch

  • Container spot and contract rates on India-to-UAE/Gulf routes, especially whether they fall materially below $9,000 per container.
  • Weekly Indian poultry shipment volumes to the UAE relative to the stated 50-55% of normal levels.
  • Any Indian government freight-assistance, export-credit, or logistics-subsidy announcement.
  • UAE wholesale and retail chicken price movements and promotional intensity.
  • Turkish poultry export pricing, capacity, and share of UAE import tenders.
  • Red Sea routing, vessel availability, insurance premiums, and port congestion developments.
  • Indian exporters are likely to restrict low-margin UAE orders, consolidate loads, seek longer-term freight contracts, and shift available production toward domestic or alternative export markets.
  • UAE poultry importers and retailers are likely to increase Turkish sourcing, hold leaner Indian inventories, and seek price concessions from distributors.
  • Export industry bodies will intensify requests for temporary freight subsidy, logistics support, and faster shipping-route normalization.
  • Processors may pass through part of the logistics burden via higher UAE wholesale prices, smaller pack-size adjustments, or reduced trade promotions.

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