The government has called an urgent meeting with exporters and industry on Monday. In this, its impact on India will be estimated amidst the rapidly changing geopolitical situation in West Asia and the huge impact on air cargo and container movement, which is affecting trade with this region. An official said in the ET report that the Commerce and Industry Ministry will hold a meeting with officials of other ministries, freight forwarders, shipping industry and exporters on Monday. In this, the impact of current developments on exports will be estimated, in which the focus will be especially on logistics and the challenges being faced.
This meeting is taking place at a time when Indian exporters are hopeful that Gulf countries will accumulate stocks in the medium term after the turmoil in the region due to the US-Israeli joint military operation against Iran and targeting several Iranian countries. Due to which the demand for rice, especially Basmati variety, will increase. Exporters of fresh fruits and vegetables said that while shipments to the West have not been affected so far, air cargo is being routed via South Africa to avoid the West Asia route, which would increase costs.
Insurance premium may be affected
Higher crude oil prices may also impact the availability of containers and bulk vessels, which could increase costs and cause exporters to incur losses on fixed-delivery-price contracts. Exporters believe that this may also lead to a huge increase in insurance premiums. Another official said that as of now, the impact on ports is minimal, but we expect some impact on the entire maritime ecosystem in the coming days, especially on the movement of oil carriers and containers.
trade between iran and india
India exported goods worth about $1.2 billion to Iran in 2025, mostly agricultural products. The share of rice was about $747 million, followed by bananas ($61 million) and tea ($51 million). India also imported goods worth $408.6 million from Iran, including petroleum coke ($135.7 million), apples ($71.5 million), and dates ($33.3 million).
what do experts say
TPCI Chairman Mohit Singla said in a media report that we hope that exports of rice and tea will be affected in the short term, but within a month all countries would like to ensure food security. We hope that the demand for rice, especially Basmati, will increase and Gulf countries will accumulate huge stocks. Singla emphasized the current uncertainty in logistics, which is impacting shipments, and is likely to increase transportation costs in the short term.
KB Exports CEO Kaushal Khakhar said in an ET report that the Strait of Hormuz has been closed to maritime traffic, and this will affect Indian fruits and vegetables going to some Middle East countries. However, for now, we think shipments to Europe and the US will not be affected. Due to closure of airspace, airlines are taking longer routes. However, this reduces the amount of cargo they can carry because they have to carry more fuel.