West Asia crisis threatens $11.8 bn of India’s farm exports

In 2025 India exported agricultural and food products worth $11.8 billion to West Asia, accounting for 21.8 per cent of the country’s total exports in this sector

metro india news  I new delhi

India’s agricultural and food exports worth nearly $11.8 billion to West Asia are facing uncertainty due to the ongoing conflict in the region, which is disrupting shipping routes and increasing insurance costs, according to the Global Trade Research Initiative (GTRI).

The think tank said that the tensions in West Asia are creating logistical challenges for exporters and raising concerns for farmers and food processors across several Indian states that depend heavily on Gulf markets.

In 2025, India exported agricultural and food products worth $11.8 billion to West Asia, accounting for 21.8 per cent of the country’s total exports in this sector. The region has traditionally been a major destination for Indian food products due to its geographical proximity and the presence of a large Indian diaspora.

However, the ongoing conflict has started affecting trade logistics, increasing shipping risks and pushing up freight and insurance costs for exporters.

India exported cereals, fruits, vegetables and spices worth $7.48 billion to the region in 2025. West Asia accounted for 29.2 per cent of India’s global exports in this category. Major products shipped include rice, bananas, onions, pulses, nuts, tea, coffee and various spices.

Rice exports are likely to face the biggest impact. India exported rice worth $4.43 billion to West Asia last year, accounting for 36.7 per cent of its global rice exports. Gulf markets are particularly important for rice producers in Punjab, Haryana, Uttar Pradesh, Andhra Pradesh and Telangana.

Apart from rice, India exported bananas worth $396.5 million and onions and garlic worth $111 million to the region. Other key exports included spices such as nutmeg, mace and cardamom worth $295.5 million, spice seeds like cumin and coriander worth $163 million, and ginger and turmeric worth $173 million.

India also exported coffee worth $240.7 million and tea worth $410.1 million to West Asia. Processed food, sugar and cocoa preparations together accounted for $1.35 billion, while fish, meat and frozen products contributed $1.81 billion in exports.

Dairy exports to the region stood at $281.1 million in 2025, representing 28.9 per cent of India’s global dairy exports. Beverage exports, both alcoholic and non-alcoholic, were valued at $197.5 million, accounting for 43.3 per cent of India’s exports in that category.

GTRI said India’s agricultural trade has become increasingly dependent on West Asian markets over the past decade. The ongoing conflict, it warned, could disrupt this vital export channel and directly impact farmers and exporters across the country.