West Asia crisis: Farmer earnings may decline if exports remain affected

The ongoing crisis in West Asia is raising concerns about its potential impact on India’s agricultural sector, with experts warning that farmer incomes could decline if disruptions to exports continue.

According to trade analysts, India exported agricultural and food products worth about $11.8 billion to West Asian countries in 2025, accounting for more than 21% of the country’s total agri exports. The region is a key market for commodities such as rice, spices, fruits, vegetables, meat and dairy products. Any prolonged conflict affecting shipping routes or trade logistics could therefore significantly impact the sector.

Reports indicate that rising geopolitical tensions have already begun affecting maritime routes and increasing freight and insurance costs. Exporters say shipments are being delayed and logistics costs have surged as vessels take longer routes or face risk premiums in war-affected areas.

In some regions of India, export disruptions are already being felt. For instance, basmati rice consignments worth hundreds of crores have reportedly been stranded at ports as shipments to markets such as Iran, Iraq and the UAE slowed due to the conflict. This has created storage bottlenecks and financial stress for mills and traders.

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Agricultural economists warn that if the crisis persists, reduced exports could push domestic prices downward, affecting farmgate earnings. Crops like rice, bananas, onions, spices and meat products are particularly exposed to Gulf markets, meaning farmers in several states depend heavily on demand from the region.

The government and export agencies are exploring alternative shipping routes and markets to minimise disruption. However, experts caution that a prolonged geopolitical crisis could weaken export demand and ultimately reduce income opportunities for Indian

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