Indian Exports Hit by West Asia Crisis

16-Mar-2026 11:40 AM

Mumbai. The fierce conflict persisting for the past 16–17 days between Iran and the US–Israel axis—coupled with the suspension of ship movements through the Strait of Hormuz and other maritime routes in the Gulf region—is having a severe adverse impact on the export of Indian agricultural products.

According to industry and trade circles, approximately 70 percent of export shipments from India have come to a standstill.

Exporters are incurring heavy financial losses due to delays in shipments, rising shipping costs, and the return of vessels midway through their voyages.

In the realm of maritime transport, container freight rates have surged by nearly 300 percent. Ships remain stranded at ports and in mid-sea, even as global market prices for petroleum continue to rise.

Although the government has asked exporters to identify those consignments that could be diverted to alternative markets, exporters may face significant difficulties in doing so, as shipping companies are reluctant to assume responsibility for rerouting vessels.

According to a leading exporter, currently, only 30 percent of consignments are being shipped, as most shipping companies have suspended their services.

Exports from India—including Basmati rice, tea, coffee, spices, fruits and vegetables, sugar, and oil meals—are being profoundly affected.