Date:07/05/2008 URL: http://www.thehindu.com/2008/05/07/stories/2008050754080500.htm

Kerala - Thiruvananthapuram

Non-Resident Keralites feel the heat of inflation

S. Anil Radhakrishnan

THIRUVANANTHAPURAM: Non-Resident Keralites (NoRKs) in West Asia, Europe, Canada, Paris and London have started feeling the after-effect of inflation and skyrocketing of prices of fresh fruits and vegetables back home.

The country has started losing foreign exchange as export of perishables from the Thiruvananthapuram, Kochi and Kozhikode airports to these destinations have come down by 40 per cent.

Bitter gourd, string beans and drumstick, which are among the vegetables in high demand among NoRKs, are no more being exported from Kerala.

Exporters say that non-availability of quality perishables following summer rain, skyrocketing prices of fresh fruits and vegetables coupled with appreciation of rupee have led to the situation.

The untimely rain has increased the moisture content in perishables. Overseas buyers reject the consignment citing that it does not have shelf life. Drumsticks are rejected during winter because of dark spots. Good quality drumsticks are not available even in summer and its price has gone up to Rs.40 a kg.

‘Overseas buyers, especially those in West Asia, are not willing to purchase by paying a higher amount as the export is on a contract basis. Once the price goes up on the domestic market, we refrain from exporting such perishables,” says an exporter.

Stiff competition

Stiff competition from Sri Lanka, Pakistan and Bangladesh and the low freight rates charged by airlines from these countries are also causing concern to the 20-odd exporters in the business for more than three decades. Sri Lanka has price advantage too as its government is giving subsidy to air freight.

Exporters depend on NoRKs to sell the vegetables and fruits exported from the capital, as they do not enjoy a monopoly in overseas market.

The exporters are also worried as the overseas market gets flooded with similar products from adjoining Sri Lanka.

The annual foreign exchange earnings received by the country from the export come to Rs.180 crore. The exports from April 1, 2007 to February 2008 were 32,564 tonnes.

More than 3,500 farmers and suppliers in the State and and the neighbouring Tamil Nadu earn their livelihood from these shipments, which provide direct and indirect employment to about 2,000 persons.