West Asia conflict drives up costs, delays exports for Maharashtra's Ganesh idol makers

The ongoing conflict in West Asia is creating significant challenges for the Ganesh idol industry in Maharashtra's Raigad district. Manufacturers and exporters of the famed Pen idols, which hold a Geographical Indication (GI) tag, are facing delayed overseas shipments, rising freight charges, and increased costs for raw materials and packaging ahead of the Ganesh festival season in September.

Pen, the country's largest hub for Ganesh idol making, supports over two lakh people engaged in idol production and related businesses. The idols, which received the GI tag in 2023, are supplied across India. Around 25 per cent of orders come from foreign countries, including the United States, the United Kingdom, Canada, Australia, Poland, Mauritius, Singapore, Thailand, Fiji, and the United Arab Emirates.

Nilesh Deepak Samel of Deepak Kala Kendra, who exports nearly 18,000 Ganesh idols annually, stated that the conflict has delayed exports and escalated costs. He estimated a roughly 25 per cent rise in export costs, with freight charges contributing the steepest increase. “One shipping container that earlier cost roughly Rs 3 lakh now costs between Rs 5 lakh and Rs 6 lakh per day,” he said. By the time idols reach customers abroad, retail prices will be at least 30-35 per cent more than the cost quoted before the war began, leading to shrinking profit margins for manufacturers.

Srikant Deodhar, president of the Shree Ganesh Murtikar Aani Vyavsayik Kalyankari Mandal, noted that exports, usually completed by March or April, have extended into June and will continue into July. “Because of disruptions in shipping routes and rising fuel costs, many consignments are still being dispatched. During the conflict, vessel movement slowed, and business became stagnant for a period. The ripple effect was felt across the supply chain,” he said.

The cost of raw materials such as clay, plaster of Paris, and paint has increased significantly. “Usually, prices rise by around 10 per cent annually due to inflation, but this year the increase has been higher, touching 25 per cent,” Deodhar added.

Sagar Pawar, 39, secretary of the Shree Ganesh Murtikar Aani Vyavsayik Kalyankari Mandal in Pen, confirmed the 25 per cent escalation, pointing to spikes in prices of golden paint and finishing materials used to embellish idols. These materials are sourced from suppliers who import them from various foreign countries. “Because of the war, their prices have gone up significantly over the past few months,” said Pawar.

The industry sources moulding clay largely from Bhavnagar in Gujarat and plaster of Paris from Rajasthan. Volatile fuel and transportation prices are driving up procurement costs. “Transport charges have gone up by nearly 25 per cent due to the increase in fuel costs,” said Samel. He added that rising paint and packaging costs are adding significantly to overall export expenses. “Paint prices have increased significantly, with some products sourced from companies such as Asian Paints becoming around Rs 200 costlier in recent months. A carton box that earlier cost around Rs 2,000 now costs about Rs 2,600, while the cost of polythene packing material has also increased substantially.”

Pawar noted that exporters and manufacturers are also incurring additional storage costs as export consignments remain pending. “Ganesh idols are generally dispatched for export between February and March. This year, shipments were delayed, forcing many manufacturers to store finished idols for longer periods,” he said. The monthly rent for storage facilities used to keep packaged idols awaiting export ranges from Rs 50,000 to Rs 1 lakh, depending on facility size and quantity of idols. Earlier, manufacturers required storage only until March or April. “This year, we have had to retain storage facilities until June and, in certain cases, longer,” Pawar added.