The escalating conflict in West Asia has begun to affect Indian trade, with sugar exports to Gulf nations currently at a standstill, Loksatta reported.
Tensions in the region intensified after the United States and Israel carried out strikes on Iran, leading to a wider confrontation. Reports of retaliatory actions involving other Gulf countries have disrupted both air and sea transport routes. With signs that the conflict could continue, its impact is now being felt by Indian exporters.
Sugar exports are among the worst hit. The central government had permitted the export of 2 million tonnes of sugar for the current season. However, industry estimates suggest that only about 500,000 tonnes are likely to be shipped under the present circumstances.
Iran has been a key buyer of Indian sugar. In 2019, after the easing of certain U.S. sanctions, India exported around 150,000 tonnes of raw sugar to Iran. More recently, in March 2025, India exported sugar worth over 405 million dollars to countries including the United Arab Emirates, Afghanistan, Iran and Tajikistan. If the conflict continues for an extended period, exports could decline further.
Amid growing concerns, the central government has formed a group of ministers to monitor developments in West Asia. Commerce Minister Piyush Goyal said the panel will conduct daily reviews of import and export activities and assess the broader trade situation. He noted that several suggestions were put forward during the group’s first meeting.
Industry leaders have highlighted the practical challenges exporters now face. P.R. Patil, president of the Maharashtra State Cooperative Sugar Federation, said shipping by sea has become difficult and air transport is restricted. In such conditions, the prospects of exporting sugar to Iran and other Gulf countries remain uncertain.
