The crisis in the Middle East has now reached India’s agriculture sector. Giving information, the economic research institute ‘Global Trade Research Initiative’ (GTIR) said that due to the ongoing conflict in West Asia, India’s exports of agricultural and food products worth more than 11.8 billion dollars i.e. more than Rs 1 lakh crore are in danger. Due to this tension, sea routes are being disrupted and uncertainty has arisen due to increasing costs of insurance and logistics.
According to the institute, in the year 2025, India had exported grains, fruits, vegetables, dairy products and spices worth more than Rs 1 lakh crore worth 11.8 billion dollars to this region, which is 21.8 percent of India’s total agricultural exports. Due to geographical proximity and large population of Indians living there, Gulf countries have been a natural market for Indian food products.
These exports will be most affected
However, the ongoing conflict in the region is disrupting sea routes, increasing insurance costs and creating uncertainty in logistics, GTIR said. According to the data, India sent grains, fruits, vegetables and spices worth $7.48 billion to West Asia in 2025, which is 29.2 percent of India’s total global exports in this category. In this, the biggest impact is expected on the export of rice. India exported rice worth $4.43 billion to the region, which is 36.7 percent of its total global rice exports. Farmers of Punjab, Haryana, Uttar Pradesh, Andhra Pradesh and Telangana may be directly affected by this.
Impact on dairy products also
Apart from this, last year India exported huge quantities of bananas ($396.5 million), onion-garlic, coffee, tea and marine and meat products to countries like United Arab Emirates (UAE), Saudi Arabia and Iran. In the case of dairy products also, about 29 percent of India’s total exports go to this sector. GTIR founder Ajay Srivastava said that the dependence of Indian agricultural exports on West Asian markets has increased significantly in the last decade. Now the ongoing conflict, disruption in shipping routes and rising insurance costs are creating uncertainty for exporters, which may have a direct impact on farmers and the food processing industry in many states of the country.
Meat and dairy exports heavily dependent on Gulf market
India exported meat and seafood products worth $1.81 billion to West Asia in 2025. About 98.9 per cent of India’s sheep and goat meat exports and 97.4 per cent of its fresh beef exports were sent to the region, indicating that livestock exporters are in high demand in the Gulf. Dairy exports are also at risk. India exported dairy products worth $281.1 million to West Asia, including butter and dairy fat worth $203 million, which is 58.1 percent of India’s global exports of these products.
Processed food, beverages and tobacco are also in danger
In 2025, the export of processed food, sugar and cocoa products to West Asia was $ 1.35 billion, which includes sugar, bakery products and processed fruits. This area is also a big market for Indian beverages. Last year, about 81 percent of India’s beer exports and 55.6 percent of soft drink exports were sent to West Asia. Tobacco shipment is also an area where exports of raw and finished tobacco products are worth millions of dollars and in some specific tobacco categories, it accounts for up to 50% of India’s exports.
There is a need to make the market different
According to GTRI, many products, including bananas, meat, spices and certain beverages, send more than 70 percent of their exports to West Asia, making them highly vulnerable to trade disruptions. The report said India’s agricultural exports have become overly dependent on West Asian markets over the past decade, and said exporters may need to diversify markets to reduce overdependence on any one region.