New Delhi: India’s agricultural and food exports valued at $11.8 billion, representing approximately 22% of the nation’s total agri-food exports for 2025, are facing potential disruptions due to the escalating conflict in West Asia, the government informed the Rajya Sabha on Friday.
This situation places key commodities such as Basmati rice, buffalo meat, dairy products, fresh fruits and vegetables, spices, and pulses at risk. These products are primarily destined for countries within the Gulf Cooperation Council, including the United Arab Emirates, Saudi Arabia, Oman, Kuwait, Qatar, and Bahrain, as well as Iran, Iraq, and Yemen.
Government Mobilizes to Mitigate Export Disruptions
According to details received by The Chenab Times, the Ministry of Commerce and Industry, under Minister of State Jitin Prasada, has acknowledged reports from exporters detailing increased freight costs, war-risk surcharges, container shortages, shipment delays, and port congestion stemming from the geopolitical tensions.
In response, the government has activated an Inter-Ministerial Group (IMG) focused on Supply Chain Resilience. This group comprises representatives from relevant ministries including Ports, Shipping and Waterways; Petroleum and Natural Gas; External Affairs; Financial Services; the Directorate General of Foreign Trade (DGFT); Customs; and the Reserve Bank of India. The IMG is mandated to conduct real-time monitoring, provide daily situation reports, and coordinate mitigation strategies to address the developing crisis.
Support Schemes and Streamlined Procedures for Exporters
A series of targeted measures have been implemented to bolster exporters. The DGFT has launched the time-bound “Support for Indian Exporters, Resilience and Logistics Intervention for Export Facilitation” (RELIEF) scheme, administered through the Export Credit Guarantee Corporation of India. Furthermore, export obligations for Advance Authorisations and EPCG Authorisations that were set to expire between March and July 2026 have been extended to August 31, 2026, without the imposition of additional fees.
Logistical Challenges and Maritime Route Adaptations
Customs authorities have initiated measures to simplify procedures for cargo that has become stranded at ports due to the closure of the Strait of Hormuz. These include provisions for temporary storage, expedited berthing, cancellation of shipping bills, and waivers of certain applicable fees. Major ports have been directed to give priority to perishable cargo, facilitate the movement of stranded shipments back to their points of origin where feasible, and expand available storage capacity.
The Directorate General of Shipping has maintained continuous communication with Indian vessels and seafarers to monitor operational challenges and has issued guidelines to prevent any opportunistic charges by shipping carriers. The Ministry of External Affairs is actively engaging with Indian missions in the affected region to identify and assess alternative maritime routes and to provide necessary advisories to exporters. Concurrently, the Ministry of Petroleum and Natural Gas is reviewing alternative supply routes for crude oil, Liquefied Natural Gas (LNG), and Liquefied Petroleum Gas (LPG) shipments to ensure the uninterrupted continuity of energy trade.
These comprehensive government actions are intended to safeguard the incomes of farmers, reduce overall logistics costs for exporters, and maintain the stability of India’s external trade in the face of the ongoing geopolitical instability in West Asia.
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The Chenab Times News Desk
