Amid rising tensions in the Middle East, its impact on global trade, and particularly on India's agricultural exports, is becoming increasingly visible. The situation is severely disrupting sea routes, shipping schedules, and logistics. Exporters and trade organizations say that if the situation doesn't improve soon, the international supply of many of India's agricultural products could be affected in the coming days.
Supply chain under pressure, thousands of containers stuck
According to the latest information, more than 20,000 containers are stuck at various stages of derailment at Indian ports and international shipping routes. Slowed ship movements and rerouted routes are preventing goods from reaching their destinations on time. This is also impacting exporters' delivery schedules and payment cycles.
Experts say that due to uncertainty in sea routes, many shipping companies are adopting additional security and alternative routes, which has increased both time and cost.
Fuel prices rise, increasing shipping costs
Fuel prices in the shipping sector have also risen sharply. Reports indicate that the price of marine fuel (bunker fuel) has reached nearly $700 per ton. This has directly impacted freight costs.
According to exporters, logistics costs are increasing by an average of 30 to 40 percent, making this situation particularly challenging for small and medium-sized exporters.
$11.8 billion worth of trade is under threat
According to trade data, approximately $11.8 billion in Indian agricultural exports could be at risk under the current circumstances. If shipments don't arrive on time, many international buyers may cancel orders or seek alternative markets.
It is feared that this will also impact India's export credit and farmers' income.
The biggest impact on the export of these products
The impact of the current crisis is being felt mainly on agricultural products which have high international demand, such as-
Basmati rice
banana
Onion
Spices and other agricultural products
Exporters of these products say rising transportation costs and delays have made many deals less profitable.
Experts warn
Trade experts believe that if regional tensions do not ease soon and sea routes do not normalise, exporters could suffer financial losses every hour.
Also, some experts also say that India will have to work quickly on alternative shipping routes and logistics strategies, so that exports are not affected and competitiveness in the global market remains intact.
Government and industry are keeping an eye on the situation
The government and trade organizations are monitoring the situation. It is likely that if the situation persists for a prolonged period, policy measures may be taken to provide relief to exporters, such as:
Assistance with shipping costs
Alternative trade routes
Export Promotion Schemes
At present, the whole world is keeping an eye on the situation in the Middle East, because it is affecting not only the energy market but also the global food and agricultural trade.
