Iran-Israel-US war: Conflict, impact on maritime traffic could hurt India exports
Any impact to maritime traffic in the Red Sea and the Strait of Hormuz could also harm shipments to Western markets, including textiles and other goods.
Also read: Israel attacks Iran with US help amid nuclear talks; Tehran responded with missiles
Ajay Sahai, Director General and Chief Executive Officer of the Federation of Indian Export Organization, said, “Shipping activities via the Red Sea and the Strait of Hormuz will be affected and goods will have to be shipped via the Cape of Good Hope. It will take another 15-20 days for exported goods to reach their destination.”
Sahai said that freight rates will increase and insurance premiums will increase. “We need to see how long this tension will last. If it continues for a long time, there will be pressure on the rupee and the dollar will rise,” he said.
The Middle East and Africa are major buyers of India’s basmati and non-basmati rice. The Middle East is also a larger importer of premium orthodox tea from India.
Also read: Israel attacks Iran with US help amid nuclear talks; Tehran responded with missiles: Mohit Agarwal, director of Asian Tea, which exports to West Asia, including Iran, said, “As the tension between Iran and Israel escalates, shipments to the region will come to a halt.” He said rice exports to Africa, which reached ₹30,168 crore in the first 10 months of FY26, will also be affected, apart from exports to Iran.
According to Dev Garg, vice president of the Indian Rice Exporters Federation, the Middle East purchased basmati rice worth ₹31,533 crore and basmati rice worth ₹5,212 crore in the first 10 months of this financial year. “But this tension between Israel and Iran has suddenly created an atmosphere of uncertainty. Exports to Africa will also be affected. We will contact the buyers on Monday to understand the situation,” he said.
