West Asia Conflict Impact Maharashtra Raigad Pen Ganesh Idols Export Freight Cost Prices

The conflict in West Asia has cast a shadow over the Ganesh idol industry in Maharashtra’s Raigad. Manufacturers and exporters of the famed, GI-tagged Pen idols are reporting delays in overseas shipments, rising freight charges and a spike in raw material and packaging costs ahead of the Ganesh festival season in September.

The country’s largest hub for Ganesh idol-making, Pen, currently supports more than two lakh people engaged in idol-making and allied businesses. Pen’s idols, which officially received their Geographical Indication (GI) tag in 2023, are supplied across India. Around 25 per cent of the orders come from foreign countries, including the United States, the United Kingdom, Canada, Australia, Poland, Mauritius, Singapore, Thailand, Fiji and the UAE.

Deepak Kala Kendra’s Nilesh Deepak Samel, who exports nearly 18,000 Ganesh idols annually to different countries, said the West Asia conflict had delayed exports and escalated costs. Export costs, he estimated, had risen roughly 25 per cent, with freight charges contributing to 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 added.

By the time the idols reach customers abroad, the retail price will be at least 30-35 per cent more than the cost quoted before the war began, said Samel, with manufacturers now worried about shrinking profit margins.

Srikant Deodhar, president of the Shree Ganesh Murtikar Aani Vyavsayik Kalyankari Mandal, said the export of idols, which was usually done by March or April, had extended well into June this year and would 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, 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,” said Deodhar.

Sagar Pawar, 39, secretary of the Shree Ganesh Murtikar Aani Vyavsayik Kalyankari Mandal in Pen, confirmed the 25 per cent escalation, while pointing at the spike in prices of golden paint and finishing materials used to embellish Ganesh idols. “We purchase these materials from suppliers who source them from different foreign countries. Because of the war, their prices have gone up significantly over the past few months,” said Pawar.

Pen’s idol industry sources moulding clay largely from Bhavnagar in Gujarat and plaster of Paris from Rajasthan, with volatile fuel and transportation prices now driving up procurement costs. “Transport charges have gone up by nearly 25 per cent due to the increase in fuel costs,” said Samel.

He said rising paint and packaging costs were adding significantly to overall export costs. “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 said exporters and manufacturers were also incurring additional storage costs as export consignments remained 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.

According to Pawar, the monthly rent for storage facilities used to keep packaged idols awaiting export ranges from Rs 50,000 to Rs 1 lakh, depending on the facility size and the quantity of idols. Earlier, manufacturers would require storage only until March or April. “This year, we have had to retain storage facilities until June and, in certain cases, even July because consignments were delayed,” said Pawar.

However, since export orders were finalised months before Ganeshotsav, manufacturers were unable to revise prices after costs surged. “Export bookings begin in December, and prices are quoted to customers well in advance. When costs increase suddenly due to factors such as war and shipping disruptions, exporters have little room to revise rates,” said Samel.

As a result, many manufacturers have seen their profit margins shrink. “Our profits have reduced because costs increased after orders had already been booked,” Samel added.

Despite the challenges, export demand for Pen’s Ganesh idols remains strong. The biggest overseas markets, Samel said, are in the US, Canada and Thailand, followed by Dubai, Mauritius and Fiji.

Deodhar highlighted that labour remained the industry’s biggest expense. Labour charges rise every year, said Pawar, while noting that the increase was higher this year, as workers — usually locals from nearby villages — struggled with rising fuel, LPG and living expenses.

“Idol-making is still a completely manual craft. It depends on skilled artisans rather than machines,” said Deodhar.