With West Asia accounting for over one fifth of India’s food exports, farmers face mounting risks.

India’s agricultural exports to the Gulf region are showing signs of gradual recovery, but ongoing logistics disruptions are limiting the pace of resurgence. Despite strong demand from West Asia, exporters face elevated freight rates, congested ports, and restricted transhipment routes that continue to strain supply chains.

Onion shipments to the UAE and Oman are moving slowly, reflecting bottlenecks at key Gulf ports. Freight rates remain significantly above pre‑crisis levels, eroding margins for exporters and raising costs for importers. Basmati rice consignments have been stranded near Bandar Abbas, where limited port operations have disrupted vessel schedules. Transhipment via Dubai to Saudi Arabia and Qatar remains restricted, further complicating trade flows.

Air freight has been deployed for perishable commodities, but its high cost makes it unsustainable for large‑scale exports. With West Asia accounting for over 21.8 per cent of India’s food exports, the prolonged disruptions pose risks not only to exporters but also to farmers whose livelihoods depend on stable market access.

The situation highlights the vulnerability of agri‑trade to geopolitical and logistical shocks. While demand fundamentals in the Gulf remain strong, the recovery of India’s agricultural exports will depend on easing freight costs, restoring port efficiency, and reopening transhipment corridors. Without these corrective measures, farmers and exporters risk prolonged uncertainty, reduced profitability, and weakened competitiveness in one of India’s most critical export markets.

Source: Exim News Service