India’s exports of agricultural products including cereals, fruits, spices, seafood, dairy and processed food products to West Asia, valued at $11.8 billion in 2025, may face disruptions as the ongoing conflict in the region affects shipping routes and raises logistics costs, the Global Trade Research Initiative (GTRI) said on Saturday.
The agency has cautioned that prolonged instability, particularly around the Strait of Hormuz, could harm India’s agri-economy by disrupting shipments and raising insurance costs, potentially affecting farmers, food processors and exporters across several states.
“There is the need for exporters to diversify markets and reduce excessive dependence on a single region,” according to the GTRI report.
Items such as sheep and goat meat, fresh beef, bananas, copra and certain spices which accounts for more than 70% of their shipments to West Asia, making them extremely vulnerable if trade flows are disrupted, the report stated.
The Gulf region’s geographic proximity and large expatriate population have historically made it a natural market for India’s agricultural and food exports.
Critical Dependence
The region accounted for 21.8% of India’s total agricultural and food exports in 2025, making it one of the country’s most important markets for shipment of rice, bananas, spices, meat and dairy.
The shipment of rice is likely to be impacted, most exported valued at $ 4.43 billion to west Asia, accounting for 36.7% of its country’s global rice exports.
Impact of rice shipment would be crucial to farmers in Punjab, Haryana, Uttar Pradesh, Andhra Pradesh and Telangana, the report stated.
“We are closely monitoring the escalating situation in the West Asia, which continues to impact global agricultural trade dynamic,” Akshay Gupta, business head for bulk exports, KRBL, which ships basmati rice to over 90 countries under ‘India Gate’ brand, had told FE.
Gupta had said India exports 70% of its basmati rice to the West Asia and Persian Gulf.
Trade sources said that 40% of the fruits including bananas are shipped to West Asian countries.
India’s banana exports last year was valued at $396.5 million, with 79.6% of it shipped to West Asia, making farmers in Tamil Nadu, Maharashtra and Gujarat particularly exposed.
Exports of onions and garlic last year was $111 million, while other vegetables reached $91.5 million, with the region accounting for 26.9% and 50.8% of India’s exports of these products respectively.
Regional Impact
Exports of spice seeds such as cumin and coriander was valued at $163 million last year, while ginger and turmeric valued at $173 million, with about 23% of India’s exports of these products going to the region. These crops mainly support farmers in Kerala, Karnataka, Rajasthan and Gujarat.
India exported fish, meat, frozen and processed products valued at $1.81 billion to West Asia in 2025.
Major products exported include fresh or chilled beef, frozen beef, sheep and goat meat, and crustaceans such as shrimp and prawns.