TNM (With ANI Inputs)

The ongoing conflict in West Asia has severely disrupted India’s premium basmati rice exports, leading to significant financial losses for traders and threatening the livelihoods of farmers. A businessman based in Bhopal stated that consignments of Premium 1121 Basmati rice are currently held up at ports, with payments ranging from Rs 2,000 crore to Rs 25,000 crore remaining unpaid.

He told ANI, “The Premium 1121 Basmati rice, which we used to export, is currently being held at the ports. If this situation continues, Indian traders will face significant losses. Our payments, ranging from Rs 2,000 crores to Rs 25,000 crores, are pending and have not been received, causing difficulties for the traders. The government is currently taking its own measures, and if the situation persists, farmers will also face problems in the future.”

An all-party meeting chaired by Defence Minister Rajnath Singh was held on Wednesday to discuss the crisis in West Asia. Senior opposition leaders and Union ministers including Home Minister Amit Shah, Parliamentary Affairs Minister Kiren Rijiju, Finance Minister Nirmala Sitharaman, External Affairs Minister S Jaishankar, Petroleum and Natural Gas Minister Hardeep Puri, and Foreign Secretary Vikram Misri attended the meeting.

Meanwhile, Indian workers such as traders, businessmen, contractors, and factory labourers are facing worsening conditions due to the halt in goods transportation and payments, which is severely affecting their income amid escalating tensions in West Asia.

A report by Crisil Ratings warned that if geopolitical uncertainties in West Asia escalate or persist, several Indian sectors including basmati rice, fertilisers, diamond polishing, travel operators, and airlines could be adversely impacted because of their direct exposure to the region. The report also highlighted that sectors reliant on imported liquefied natural gas (LNG), such as ceramics and fertilisers, may encounter near-term production challenges requiring close monitoring.

Sectors linked to crude oil, including downstream oil refiners, tyres, paints, specialty chemicals, flexible packaging, and synthetic textiles, could also be affected if energy prices remain elevated. India imports around 85 per cent of its crude oil and half its LNG requirement, with approximately 40-50 per cent of crude oil and 50-60 per cent of LNG shipments passing through the Strait of Hormuz.

According to the report, most shipping vessels have ceased using this route since March 1, 2026, due to increased passage risks. Any prolonged disruption could affect the global availability of crude oil and LNG and push prices higher.

Despite US President Donald Trump’s assertion that negotiations with Iran are underway and that the conflict may soon end, the Pentagon is expected to deploy troops from the 82nd Airborne Division to the Middle East as the conflict enters its fourth week.

Published Date: April 7, 2026