Ending a halt after West Asia conflict, India’s agricultural exports to the Gulf region have commenced but at a slow pace, exporters said.
However, higher freight charged by shipping lines is still causing problems for exporters. In addition, the onward movement of perishable cargoes like fruits and vegetables through Dubai to Saudi Arabia and Qatar has been hampered because of the security situation. A major chunk of the country’s horticulture exports to Gulf countries passes through Dubai, which also serves as the region’s key trans-shipment hub.
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Logistics Bottlenecks
Ajit Shah, a leading onion exporter said that few consignments carrying onions and vegetables have been sent to Khorfakkan and Fujairah ports, Dubai and Muscat. “The cargo movement is slow and freight rates have increased sharply,” Shah, told FE.
Dubai Customs earlier this month introduced a temporary facilitation for cargo destined for Jebel Ali Port through the ports of Khorfakkan and Fujairah, from where containers may be transported by road. “Exports of onion, bananas, grapes and other perishables have been really hit in the last three weeks following the conflict,” a leading exporter of fruits said.
Rice exporters have dispatched three vessels to Iran, a key destination for India’s basmati rice recently. “However, for several days now, these ships have remained anchored near Iran’s Bandar Abbas port, unable to secure berthing access. Owing to the conflict, Bandar Abbas, one of Iran’s busiest ports is operating below full capacity,” Ranjit Singh Jossan, managing director, Jossan grains, a leading exporter of basmati rice in Punjab, said.
The Middle East accounts for nearly 60–70% of India’s total basmati exports, and instability in the region is directly affecting shipments, payments, and trade coordination.
Some consignments of perishable goods such as fruits and vegetables are being sent through air routes, which exporters said is not economically sustainable because of the huge cost involved.
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Regional Instability
In terms of overall agricultural product exports, West Asia accounted for 21.8% of India’s total food exports in 2025 valued at over $50 billion, making it one of the country’s most important markets for the shipment of rice, bananas, spices, meat and dairy.
The agency has cautioned that prolonged instability, particularly around the Strait of Hormuz, could harm India’s agri-economy by disrupting shipments and raising insurance costs, potentially affecting farmers, food processors and exporters across several states, the Global Trade Research Initiative (GTRI) stated in its recent report.
TOPICSAgri-economyThis article was first uploaded on March twenty-two, twenty twenty-six, at twelve minutes past six in the evening.