By newspress.co.in

Hyderabad: The war that broke out between America, Israel and Iran has created a crisis in the supply of petroleum products in India. At the same time, business is also being badly affected. There is a negative impact on both import and export. Talking about exports, India sends most of its agricultural products to the Middle East. More than Rs 1 lakh crore was exported in 2025. But due to the Middle East crisis, this business has come to a standstill. Lakhs of tonnes of goods are stuck on the way. Because, water, land and air routes to the countries of the Middle East are closed. Apart from this, insurance and shipping costs have also increased. While exporters are suffering huge losses due to this, farmers are also being affected significantly. Let us know in the first episode of ETV Bharat how and to what extent the export of agricultural products is being affected by the war.

Impact of Iran-Israel war on India’s trade: According to the report of Global Trade Research Initiative (GTRI), about 11.8 billion dollars (about Rs 1 lakh crore) of agri-food exports (rice, fruits, spices) to West Asia are in danger due to the war. More than 3,000 containers are stuck at the ports.

4 lakh tonnes of Basmati rice stuck on the way: The Iran-Israel/US tension has badly affected the export of Basmati rice from India. About 4 lakh tonnes of rice is stuck in ports or en route. Because shipping routes have been disrupted. Due to the war, shipping costs have doubled, causing losses to exporters. Actually, Iran is the major importer of Basmati rice from India (more than 25% share). But due to the war, the shipments to Iran have come to a standstill. India is the leading exporter of Basmati rice in the global market. During the year 2024-25, the country exported more than 60 lakh 65 thousand tonnes of Basmati rice worth Rs 50312.01 crore (5944.42 million US dollars) to the world. According to a recent report by CRISIL Ratings, countries in West Asia account for about 70-72% of India’s Basmati rice exports, which was about 60 lakh tonnes in the year 2024-25.

Container freight doubled, profit decreased: The orders for Basmati rice and other agricultural products from Middle East countries including Iran which were received before February 28, 2026, were shipped. But, due to war-risk insurance and shortage of shipping containers, the freight has now doubled, resulting in an additional burden of $2,000 or Rs 1.8 lakh per container. Whereas, exporters have to pay their margin money.

Container freight doubled, profit decreased: The orders for Basmati rice and other agricultural products from Middle East countries including Iran which were received before February 28, 2026, were shipped. But, due to war-risk insurance and shortage of shipping containers, the freight has now doubled, resulting in an additional burden of $2,000 or Rs 1.8 lakh per container. Whereas, exporters have to pay from their margin money. Loss to farmers: Due to stoppage of shipment, there is a huge decline in the prices of Basmati rice and other agricultural products. Rice has fallen by about Rs 600-800 per quintal, causing huge financial loss to farmers and exporters. Due to stoppage of exports, arrival of fruits/vegetables in Maharashtra, Karnataka and other states has increased and domestic prices have fallen. Fruit and vegetable farmers are also suffering losses due to this. Apart from this, exporters are also facing delay in payment.

Export of meat to Khadi countries stopped: Due to Iran-Israel tension, India’s meat and seafood exports to West Asia worth Rs 16730 crore (about 1.81 billion dollars) are being affected. According to data from the Global Trade and Research Initiative (GTRI), India exported fish, meat and processed products worth Rs 16730 crore (about $1.81 billion) to West Asia in 2025. Major products exported include fresh or chilled beef, frozen beef, sheep and goat meat, crustaceans like shrimp. Fresh or chilled beef exports to West Asia are expected to reach Rs 1,158.39 crore ($139 million) in 2025, which is 97.4 percent of India’s total exports of this product. At the same time, the export of frozen beef to this region was Rs 10,500 crore ($ 1.27 billion), which is 28.9 percent of India’s global exports. Exports of sheep and goat meat reached Rs 790 crore ($95.2 million), with 98.9 percent of India’s total exports going to West Asia. Any disruption in Gulf markets could have a serious impact on India’s buffalo meat and livestock exporters. Especially in Uttar Pradesh, Maharashtra and Telangana, where most of the processing units are located. If the conflict continues for a long time, there is a possibility of business coming to a halt.

To which countries does India export meat: India mainly exports beef and poultry meat to the countries of the Middle East. According to a GTRI report, more than 70 percent of India’s exports go to West Asia. These include sheep and goat meat (98.9 percent), fresh or chilled beef (97.4 percent). Exports of animal products include buffalo meat, sheep/goat meat, poultry products, animal intestines, milk and milk products, honey etc.

Fruits and vegetables worth Rs 1200 crore stuck at Mumbai Port: India’s fruit and vegetable exports to West Asia are also being badly affected due to the Iran-Israel conflict. Goods worth more than Rs 1,200 crore are stuck in more than 1,000 containers at Mumbai (JNPA) port. Banana, grapes, pomegranate and onion are loaded in these containers. Movement of ships has stopped at Jebel Ali Port (Dubai) and it is taking 20-25 more days to send goods. Not only this, the cost has increased due to “War Risk Surcharge” which ranges from 2000-4000 dollars. Due to halt in shipment, grapes from Nashik and bananas, onions and other fresh vegetables sent from Maharashtra are rotting at the ports.

How much fruits and vegetables are exported: During 2024-25, India exported fresh fruits and vegetables worth Rs 15,100 crore (US$1818.56 million), including fresh fruits and vegetables. Fresh fruits and vegetables were mainly exported to Bangladesh, UAE, Iraq, Netherlands, Nepal, Malaysia, UK, Sri Lanka, Oman and Uzbekistan.

Export of dairy products worth Rs 2360 crore affected: India’s dairy and processed food exports worth about $281.1 million i.e. Rs 2360 crore (28.9% of total dairy exports) have been affected due to the Iran-Israel conflict. Due to blockage of sea routes and increase in insurance/shipping costs, the supply of goods to Gulf countries has come to a halt, posing a serious threat to the export of dairy products.

Egg became cheaper: Egg prices in India have fallen due to stoppage of exports from Gulf countries due to the ongoing conflict in the Middle East. Trade with countries like UAE, Oman, Qatar and Bahrain has come to a standstill due to security concerns and disruption in transport routes. As a result, there has been a sudden fall in domestic egg prices due to the glut of eggs, which has come as a relief to consumers. Egg prices have fallen in states like Karnataka and Telangana. Here the price of an egg has fallen from Rs 7 to Rs 4.60. This has created challenges for those poultry farmers who are heavily dependent on exports.

Fall in watermelon prices: Watermelon prices in India have continued to decline due to the ongoing conflict in West Asia, slowing exports to Middle Eastern markets. In some areas the prices have fallen to Rs 7 per kg.

Published Date: March 16, 2026