TN’s totapuri stuck in a rut as turmoil hits key buyer Iran

CHENNAI: Escalating geopolitical tensions involving Iran, Israel, and the United States are casting a long shadow over global trade, and Tamil Nadu's prized mango exports are bearing the brunt.

The conflict, which has disrupted shipping routes and spurred fears of wider instability in West and Central Asia, is particularly hurting mango farmers and pulp processors in Tamil Nadu—one of India's leading producers of mango pulp, especially of the Totapuri variety.

Iran, a major importer of mango pulp from Tamil Nadu, has slashed procurement amid the unfolding regional crisis. This abrupt drop in demand, combined with soaring freight costs and disrupted logistics, has left thousands of tonnes of mangoes unsold, jeopardising the livelihoods of farmers and the viability of pulp manufacturing units.

"Iran has traditionally been one of the largest buyers of Totapuri mango pulp from Krishnagiri and Dharmapuri regions. This year, orders have either been cancelled or indefinitely delayed," said Ravi Kumar, a long-time exporter based in Krishnagiri.

The conflict has rendered critical maritime corridors like the Red Sea and the Strait of Hormuz increasingly volatile. Shipping lines are now rerouting vessels to avoid high-risk zones, further straining the already fragile supply chains.

"Freight rates to West Asia and the Mediterranean have surged by nearly 20%. In some cases, vessels are refusing to dock at key ports altogether," said Rajeev, proprietor of a Chennai-based agri-export logistics company.

The financial strain is most acute at the grassroots. Farmers, already reeling from falling prices, are now unable to cover basic production costs.

"Mangoes are being sold at just Rs 3 to Rs 4 per kg in the local markets. We've spent nearly Rs 10 per kg on cultivation and harvesting. This is completely unsustainable," lamented M Vijayakumar, a mango grower in Krishnagiri.

He added grimly, "In Krishnagiri, mangoes are being left to rot on trees because buyers are not coming forward. This is the worst crisis we've seen in a decade."

According to the Federation of Indian Export Organisations (FIEO), Tamil Nadu ranks among India's top six mango-producing states.

The districts of Krishnagiri, Dharmapuri, and Salem are crucial hubs for both fresh and pulp-grade mangoes.

The Totapuri variety, prized for its pulp yield, forms a substantial chunk of the export volume.

In FY 2023–24, India exported over 22,960 metric tonnes of fresh mangoes and more than one lakh metric tonnes of mango pulp, generating revenue exceeding Rs 700 crore.

A significant share of this originated from Tamil Nadu and Karnataka.

"With demand from Iran drying up and the situation in the Red Sea deteriorating, we're staring at a sharp fall in mango pulp exports this year. This will severely affect not just farmers but also the dozens of pulp processing units that employ thousands," warned agricultural economist S Raghavan.

Although the Tamil Nadu government has acknowledged the crisis, exporters and growers are calling for urgent and decisive interventions.

"We've been assured that state-backed pulp procurement will continue, but the pace is far too slow to handle the sheer volume. What we need now is a declared minimum support price and targeted export incentives," said TR Murugan, a pulp manufacturer based in Hosur.

M Swaminathan, head of the FIEO's Coimbatore Chapter, said the organisation has begun assessing the implications of the Iran-Israel crisis on trade.

"The issue has just arisen. Only after analysing the problems in export routes and freight costs, we will submit a detailed report to our headquarters. They will formulate an appropriate response," he told this newspaper.

However, FIEO president SC Ralhan offered a broader perspective.

"While geopolitical tensions in the Middle East pose challenges, India's export sector remains resilient and adaptive. Trade with Iran and Israel, though important, constitutes a small portion of our overall basket," he said in a statement, dated June 23, 2025.

"We anticipate some short-term impact on demand and logistics, especially in the Gulf region. But Indian exporters have consistently demonstrated agility in re-routing shipments, diversifying markets, and managing financial exposures. Our MSMEs and large-scale exporters, backed by strong government support, will help cushion these shocks," he said.

Ironically, as monsoon showers usher in the harvesting season in Tamil Nadu, a bumper mango crop is colliding with logistical bottlenecks and collapsing demand.

Experts caution that without swift action, the cumulative losses could spiral into hundreds of crores.

"This is a global crisis with intensely local consequences—impacting farmer incomes, rural employment, and agro-based industries. Tamil Nadu's mango belt requires urgent government intervention, " stressed Raghavan.

He also urged the State government to initiate talks with the Centre and seek compensation for mango growers, akin to the support Karnataka availed under the Price Deficiency Payment Scheme (PDPS).

A senior official in the Agriculture-Farmers' Welfare department said, "Minister MRK Panneerselvam and several senior officials, including the Director of Horticulture and Plantation Crops, are currently abroad. However, due to our intervention, mango pulp production is ongoing. As for compensation under PDPS, a final decision is yet to be taken."