Rising Israel-Iran tensions threaten India's agri exports

Experts warn of potential disruptions to trade routes, payments, and shipments

- Vijay C. Roy, Subhash Narayan & Rhik Kundu

The escalating conflict between Israel and Iran is clouding the outlook for India's agricultural exports, with experts warning of potential disruptions to trade routes, payments and shipments, particularly via Iran's Bandar Abbas port, a key gateway for India to Afghanistan and Central Asia.

Exporters are also calling for urgent action to scale up the Chabahar Port as a strategic alternative to safeguard India's regional trade links.

"Payment mechanisms—already constrained by US curbs—may tighten further, and heightened security risks in the Gulf could push up insurance premiums and delay shipments," said Ajay Srivastava, co-founder of the economic think tank Global Trade Research Initiative (GTRI).

"Perishable goods like rice, bananas, and tea are particularly at risk," he added.