Middle East tension: Centre to convene meeting with exporters

New Delhi: To assess India's trade to the Middle East region following US and Israel jointly launched military strikes on Iran, the Union Ministry of Commerce has convened a meeting of exporters, shipping lines, freight forwarders and officials from concerned ministries on Monday.

The meeting will be held in a hybrid mode to analyse the situation on India's trade, the official said.

Already exporters have expressed serious concerns that the war will affect trade routes through the Strait of Hormuz and the Bab el-Mandeb Strait. Both are key for movement of ships. It connects India to the Gulf region, North America and Europe.

Federation of Indian Export Organisations (FIEO) President S C Ralhan said the ongoing conflict has already begun to disrupt established global logistics channels.

Apart from disruptions of air routes, Maritime trade through the Red Sea and key Gulf straits faces heightened uncertainty. If diversions become prolonged, shipments may increasingly have to reroute via the Cape of Good Hope, adding an estimated 15-20 days to transit time for Europe and the United States, Ralhan has said.

Separately, the Indian Rice Exporters Federation has advised its members to avoid fresh cost, insurance and freight (CIF) commitments for Iran and parts of the Gulf as the security situation in the region deteriorates and fears of restricted movement through the Strait of Hormuz mount.

The federation, in an advisory to its members on Sunday, asked exporters to switch, wherever possible, to free on board (FOB) terms -- a structure under which the international buyer bears freight, insurance and related risks so that Indian exporters are not left exposed to runaway costs on fixed-price contracts.

The disruptions may push freight rates and insurance premiums for traders.

Exporters stated that it may take a few days to get a clarity on the availability of shipping capacity, new routes, insurance and freight rates.

West Asia has major routes through which India's exports to the biggest markets of the US and Europe pass.

India's exports to the US stood at $86.5 billion, $98.4 billion to Europe and $58.8 billion to West Asia. Taken together, these regions account for about 56 per cent of India's merchandise exports.

Freight rates are usually adjusted at the start of the month by major shipping lines, and on Monday, new rates will be published, he said. At the start of 2026, the rates were contracting.