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Indian fruit and vegetable exporters are among those worst affected by the cloud of volcanic ash that has closed down European air space for the past eight days.

'Exports worth US$10bn are shipped annually by air via European air routes,' director general of the Federation of Indian Export Organisations Ajay Sahai told the Business Standard. 'The problem would aggravate if the crisis is prolonged.'

Exporters are incurring daili losses of around Rs200m (US$4.5m), with a total of 313 airports crippled due to the ash cloud and more than 63,000 flight cancellations since 15 April.

Indian industry sources said hundreds of tonnes of fruit and vegetables are exported to Europe and the Gulf each week, the bulk from Maharashtra.

'Indian vegetables and fruits are in large demand in Europe and the Gulf. Although exports to Europe have come to a halt in the last eight days, the Gulf has given much-needed relief to exporters,' said Kaybee Exports CEO Kaushal Khakhar.

'However, the large amount exported to Europe either remains unsold or is being sold in the retail markets in India.

'Exporters will have to pay a penalty of Rs200,000-250,000 (US$4,500-5,600) per week for not meeting their export commitments to European buyers.'