India’s exports of fruits and vegetables to Gulf countries are expected to receive a significant boost following the reopening of the Strait of Hormuz after an interim agreement between the United States and Iran, exporters said.
Trade flows of onions, chillies, pomegranates, bananas, mangoes and other fresh produce to West Asia had been disrupted since February 28 due to the closure of the strategic waterway and cargo movement challenges at Dubai’s Jebel Ali Port. The Gulf region accounts for more than 20 per cent of India’s agricultural exports.
Exporters noted that freight rates, which surged to nearly ten times their normal levels during the disruption, are likely to ease as vessel traffic gradually resumes through the strait. The movement of perishable cargo through Dubai to key markets such as Saudi Arabia, Qatar and Kuwait had also been affected by heightened security concerns and logistical bottlenecks.
Shipping insurance premiums, which increased amid the regional uncertainty, are also expected to moderate if stability in the region continues to improve.
The disruption had significantly impacted the transportation of perishable agricultural commodities, leading to delays, increased costs and reduced export competitiveness. With shipping routes reopening, exporters expect vessel turnaround times to improve and pending consignments to move more efficiently.
To mitigate the impact of the disruption, Dubai Customs in March introduced temporary arrangements allowing cargo bound for Jebel Ali Port to be routed through the ports of Khorfakkan and Fujairah before being transported onward by road.
“With such high freight costs and delays in clearance, it was not economically viable to export to the Gulf region. Exports to the Gulf would resume once the situation normalises in the strait,” said Ekram Husain, president of the Fresh Fruits and Vegetables Exporters Association.
West Asia remains a crucial market for Indian agricultural products, accounting for 21.8 per cent of the country’s food exports in 2025, with export earnings exceeding US$50 billion. The region is a major destination for Indian bananas, spices, meat and dairy products.
However, the recent disruptions have weighed on export performance. According to data from the Ministry of Commerce, India’s fruit and vegetable exports during April-May FY27 declined 14.67 per cent year-on-year to US$590 million.
Industry stakeholders expect the reopening of the Strait of Hormuz and the restoration of normal shipping operations to support a gradual recovery in exports to the Gulf region in the coming months.
