While India’s export shipments have been held up by the Middle East conflict, the import trade also faces growing disruption
India’s fresh produce trade is bracing for a potential oversupply situation as the Gulf conflict holds up exports from the nation while global suppliers divert Middle East-bound shipments to India.
The conflict has already caused a backlog of outbound fruit shipments at Indian terminals as shipping lines suspend services. Reports indicate that more than 1,000 containers of fresh produce are currently held up at Jawaharlal Nehru Port Authority (JNPA) near Mumbai, primarily destined for the UAE, Saudia Arabia, Iran and neighbouring countries.
The shipments consist largely of bananas, grapes, pomegranates and assorted vegetables, and the disruption comes at a critical time during the Ramadan season when demand for fresh fruit and vegetables peaks across Gulf countries.
Dhananjaya Makali, India director of major distributor Global Star Group, said that any prolonged delays could result in both logistical challenges and financial losses for exporters handling highly perishable cargo. Exporters have also expressed concerns that if shipments do not resume soon, they will have to divert export-quality produce to the domestic market, driving down prices.
The CEO of one of India’s leading banana exporters, who preferred to remain anonymous, told Fruitnet the industry was finding alternative shipping routes to some Middle East markets to bypass the Strait of Hormuz. “For instance, we can route through Oman ports and then truck to Saudi Arabia and the UAE,” he said.
However, he pointed out the shipping costs were much higher, with lines imposing sizeable surcharges. He added that key markets like Iran and Iraq remained “off-limits”, noting that it was ”too costly” to ship there from the UAE.
India’s fresh fruit import trade is also facing growing disruption from the conflict.
“India is entering a seasonal window for fruits such as Egyptian oranges and apples from South Africa, Chile, New Zealand, the US and European origins,” said Makali. “However, the situation has already begun to affect inbound logistics, with delayed shipments, higher marine insurance costs, and escalating seafreight rates making imports more complex and costly.”
Gagan Khosla of major importer NGK Trading said multiple containers for import were stuck in transshipment hubs, while fruit bound for Middle East markets was also being diverted to India.
Indeed, there are growing concerns that several supplying countries will redirect cargo originally intended for Saudi Arabia and other Middle East markets to India.
“If this happens, the Indian market could face temporary oversupply conditions, potentially turning into a dumping ground,” said Makali. “Such a scenario could destabilise prices and create challenges for both domestic traders and importers.”
Khosla said that shipments of South African fruit as well Washington and Italian apples were already being diverted to India.
India’s imports of avocados from Tanzania are also ramping up, and there are concerns that suppliers will divert Middle East-bound shipments to India.
“Currently the shipping from Tanzania to India is normal and on schedule, though there are some additional costs added,” said Ajay TG, GM of Westfalia Fruit India. “We are closely watching how the situation develops as the shipments to Middle East are getting affected and this will lead to more volumes flooding the Indian market.”
Another key impact of the conflict for the Indian fresh produce trade is Iran’s recent suspension of agri-food exports.
Makali said the India-Iran bilateral fruit trade typically intensifies in the February-March period. “Iran exports large volumes of competitively priced red apples and kiwifruit to India, while Indian exporters supply bananas and other commodities in return,” he said. “Any disruption to this long-standing barter-style trade arrangement could lead to significant financial exposure for businesses engaged in long-term supply contracts on both sides.”
Iran ranked as the largest supplier of imported apples to India by value in 2024 (US$95m) in 2024. Turkey, which has been the other leading supplier in recent years, has shipped negligible volumes in 2025/26 after losing most of its crop to a freeze. However, Khosla does not envisage a shortage of apples in the Indian market.
“Iranian apples exit the market by mid-March anyway and the lack of Turkish supply is being compensated by late European and domestic fruit as well as increased South African and Chilean volumes,” he said.
