India’s exports of rice, fruits, and vegetables to Gulf countries have resumed, but high freight charges and slow clearance processes are limiting shipment volumes, exporters say.
Perishable items like onions, bananas, and grapes are particularly affected, with onward movement through Dubai to Saudi Arabia, Qatar, and Kuwait hampered by the ongoing security situation in the region.
Logistical Bottlenecks
Dubai Customs recently allowed temporary cargo facilitation through smaller ports at Khorfakkan and Fujairah, bypassing the congested Jebel Ali Port. However, these ports have limited capacity, slowing operations.
Ajit Shah, a leading onion exporter, said freight costs for vegetables have surged roughly sixfold to $900 per 29-ton container, with an additional $60–$100 per container for road transport. These high costs and delays have made exporting economically unviable.
Exports from India had nearly stopped after the West Asia conflict began on February 28 and are only resuming at a limited scale. Ekram Husain, president of the Fresh Fruits and Vegetables Exporters Association, said that delays and steep freight charges are discouraging exports to the Gulf.
Financial Strain
Ranjit Singh Jossan, managing director of Jossan Grains in Punjab, noted that multiple Middle Eastern ports are congested, leaving thousands of containers stranded. Shipping lines are reportedly charging $7,000–$10,000 per full container load, adding financial pressure on exporters.
The Middle East represents 60–70% of India’s basmati rice exports, and the ongoing instability has disrupted shipments, payments, and trade coordination. In 2025, West Asia accounted for 21.8% of India’s total food exports, valued at over $50 billion, making it a critical market for rice, bananas, spices, meat, and dairy products.
The Global Trade Research Initiative (GTRI) has warned that prolonged instability, especially near the Strait of Hormuz, could hurt India’s agricultural economy by raising insurance costs and disrupting shipments, affecting farmers, food processors, and exporters across multiple states.
