KOZHIKODE: Kerala exporters have begun sending Onam-related goods to Gulf countries as demand builds ahead of the festival, but a sharp rise in freight costs is putting pressure on businesses during one of their busiest export periods.

Shipments of traditional garments, vegetables, fruits and other festive products have started moving from Kerala to overseas markets, with exporters reporting particularly strong demand from the Gulf.

The first consignments were dispatched about two weeks ago and included traditional Onam dhotis and shirts flown from Karipur airport. Exporters expect shipments to accelerate as the festival approaches, with fresh produce, flowers and other seasonal products also set to be sent abroad.

However, industry representatives say transportation costs have risen substantially in recent months, complicating efforts to meet time-sensitive orders.

Air India has increased freight charges on export consignments by ₹15 per kg as a special Onam-season increase from Thursday, according to exporters cited in the report. They expect some other airlines to revise their rates in the coming days.

Munshid Ali of Kozhikode-based CK Global Trading Company, who is also secretary of the Kerala Exporters’ Forum, said some freight rates had more than doubled.

He said rates that had previously been around ₹70 had climbed to nearly ₹200, creating significant cost pressures for exporters.

Despite the increase, exporters have little flexibility to delay shipments because buyers require the products in time for Onam celebrations.

“We cannot wait for freight rates to come down because buyers need these products for Onam celebrations,” Ali said.

Exporters said demand was being reported from markets including the UAE, Saudi Arabia, Kuwait and Qatar, as well as the UK, Ireland and other European destinations.

Hameedali K M, director of international marketing at VKC Group and president of the Kerala Exporters’ Forum, said freight rates had been rising sharply since February and had reached unusually high levels amid the conflict in West Asia.

He cited shipping costs to Jebel Ali in the UAE as an example of the escalation, saying the cost of transporting a comparable consignment had risen from around $220 previously to nearly $5,300.

Such increases could have a significant impact on India’s export sector if elevated freight costs persist, he said.

Exporters are now preparing for the peak Onam shipping period while watching for further freight increases as airlines and logistics operators adjust rates to seasonal demand and wider regional disruptions.