Economic Impact on Maharashtra Farmers Due to Dubai Port Disruptions Amid US-Iran Conflict

The ongoing conflict between the US and Iran has resulted in significant economic setbacks for farmers and exporters in Maharashtra, as approximately 800 to 1,000 containers filled with agricultural products remain stranded at Dubai's Jebel Ali port. This port, one of the largest in the Middle East, serves as a crucial hub for the import and distribution of agricultural goods to Gulf nations. Since the onset of hostilities on February 28, operations at the port have come to a standstill, leaving hundreds of containers unloaded. Traders have reported that containers that reached Dubai, along with those dispatched from India prior to the conflict, are now stuck. The shipments primarily consist of bananas, grapes, pomegranates, watermelons, leafy vegetables, and onions exported from Maharashtra.

During Ramadan, there is typically a surge in demand for fruits such as grapes, pomegranates, bananas, dragon fruit, and watermelons in Gulf countries, prompting farmers to plan their crops accordingly. However, the current conflict has severely impacted exports this year. The grape trade has been particularly hard hit, with an estimated 5,000 to 6,000 tons of grapes affected at the ports, while an additional 10,000 tons of export-quality grapes in orchards may have to be sold at lower prices in the domestic market.

At Jawaharlal Nehru Port (JNPT) near Mumbai, around 80 containers of grapes destined for Dubai remain unloaded, while over 200 containers dispatched from Nashik are stuck outside the port, causing significant congestion. This information was shared by Vikas Singh, vice president of the Horticultural Exporters Association. The entire export chain has been disrupted, with containers trapped at ports and packed grapes piling up in packing houses. Exporters indicate that clarity on the situation will only emerge once shipping lines resume operations. Madhukar Kshirsagar, director of the Indian Grape Exporters Association, noted that each container incurs losses amounting to several lakhs of rupees. Farmer organizations are urgently calling for government intervention. Bharat Dighole, president of the Maharashtra Onion Producers Association, has urged the government to provide a subsidy of at least ₹1,500 per quintal, waive port and delay charges for the stranded containers, and initiate a temporary purchase scheme to support exporters until exports can resume.