West Asia conflict puts $11.8 bn worth of farm exports at risk: GTRI, Pg16
West Asia conflict threatens $11.8 billion Indian agricultural exports, disrupting shipping and raising insurance costs, impacting key commodities like rice and spices.
India's agricultural and food product exports worth $11.8 billion to West Asia are at risk due to ongoing regional conflict disrupting shipping routes.
In 2025, India exported approximately $11.8 billion of agricultural and food products to West Asia, representing 21.8% of India's total exports in this sector.
India's rice exports to West Asia amounted to $4.43 billion in 2025, constituting 36.7% of its global rice exports.
Other key exports include bananas ($396.5 million) and onions and garlic ($111 million) to countries like the UAE, Saudi Arabia, and Iran.
Detailed Insights:
The Gulf region has historically been a natural market for India's food exports due to geographic proximity and a large expatriate Indian population.
Disruptions in shipping routes, increased insurance costs, and logistical uncertainties due to the conflict pose significant challenges to India's agricultural exports.
In 2025, India exported $7.48 billion of cereals, fruits, vegetables, and spices to West Asia, accounting for 29.2% of India's global exports in this category.
States like Punjab, Haryana, Uttar Pradesh, Andhra Pradesh, and Telangana are major rice producers and heavily reliant on West Asian markets.
India's agricultural exports have become deeply dependent on West Asian markets over the past decade, especially for rice, bananas, spices, meat, and dairy products.
Key Concepts Involved:
Agricultural Exports: Shipment of agricultural products from one country to another for trade.
Shipping Routes: Established sea lanes used for transporting goods via ships.
Geopolitical Risk: Potential impact of political events on business and trade.