• Source:JND
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The escalation of the Iran war has cast a pall over Indian exports. Hundreds of containers are stranded at ports, halting the delivery of fresh cargo. Turmoil in the Arabian Sea has increased export insurance costs. Shipping goods to Europe and America will now require the Cape of Good Hope route instead of the Strait of Hormuz, which will increase shipment times by 20-25 days.

This could impact exports of items like textiles and footwear. Exporters are currently assessing the war situation. India exports $3 billion each month to the UAE alone. In the first 10 months of the current financial year 2025-26, India exported $32 billion to the UAE, which includes fruits, vegetables, rice, and a variety of food items.

Exports will be affected

Expectations of a significant increase in exports to Gulf countries due to Eid appear to be faltering. West Asia and the Gulf are major importers of Indian rice. Approximately 15 per cent of onion exports also go to West Asia.

According to a report by Jagran.com, SC Ralhan, president of the Federation of Indian Export Organizations (FIEO), said exporters are most concerned about goods already in transit. Even goods held at ports cannot be brought back because of the cost of transportation and the lack of storage space. He noted that the month of Ramadan is currently underway, and Gulf countries import large quantities of food from India for Eid, which could now be affected.

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The report cited sources saying that 300 containers carrying perishable items like fruits and vegetables are stuck at the Jawaharlal Nehru Port. It is reported that more than 1,000 containers are stuck at the Mundra Port. Exporters say that food items cannot be stored for long. If the war continues for the next week or ten days, they will certainly suffer huge losses.

Price of pulses may also be affected

Suresh Agarwal, chairman of the All India Dal Millers Association, said that if the war continues for a long time, the price of lentils could rise. He explained that India primarily imports tur dal from Zimbabwe, Kenya, and Myanmar, and the goods from these countries arrive via Sri Lanka. Therefore, there is no problem with that.

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India primarily imports peas from Canada, but these imports have already been substantial, and the country has sufficient stocks. However, India imports lentils and chickpeas from Australia via the Arabian Sea route. Therefore, if the war continues for a long time, the price of lentils may increase.


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