The impact of the Israel conflict is starting to spread everywhere, and India is no exception. The biggest impact now is on exporters, who are extremely anxious and fearful because the future of their shipments, worth crores, is completely uncertain. The goods they have sent are not reaching their destinations, and orders from the other side have come to a halt, causing a lot of trouble for them.In Ludhiana, where various industries are catered to, whether it’s woolen garments, nuts and bolts, or auto spare parts, everyone is saying that their exports have been severely affected by the conflict between Iran and Israel-US.Talking to The Tribune, Vikas Jain said that exporting garments to countries like UAE, Oman, Qatar, Dubai etc was very grim.“The freight which was 400 US dollars per container had risen to 5,000 US dollars. We are under constant fear as the war has started showing the impact,” said Jain.Pankaj Sharma, president, Association of Trade & Industrial Undertakings (ATIU), convened a meeting of the Exporters Wing of ATIU and said the exporters—particularly those dealing in engineering goods, hosiery and garments — highlighted multiple challenges affecting their operations.Sharma said, “They have reported widespread cancellation of export orders due to weakening global demand, along with delays and suspension of payments from overseas buyers. Adding to their distress, a sharp increase in raw material prices within India has made production increasingly unviable.”Vijay Sharma, MD, FAS International and Head of the Export Unit of ATIU maintained, “The lack of remittances from customers and absence of support from financial institutions have made it extremely difficult for exporters to sustain and plan operations.” He further elaborated that shipments routed through the Strait of Hormuz—covering key destinations such as Dubai, Dammam, Riyadh, Qatar, Bahrain, Kuwait and Iraq—have been severely disrupted. The cargo is being diverted to smaller ports like Sohar, Fujairah and Khor Al Fakkan, leading to heavy congestion.In several cases, shipping lines have arbitrarily offloaded cargo at ports such as Chennai and Hong Kong, issuing ‘End of Voyage’ notices, leaving exporters stranded without logistical clarity.The exporters from city also raised serious concerns over arbitrary and excessive charges imposed by shipping lines, ranging between $2,000 to $6,000 per container, further escalating their financial burden.Rakesh Kapoor, MD, Paramount Impex, said, “Due to the restrictions imposed by shipping lines, we are left with no alternative but to bear these unjustified costs, as buyers are already looking for reasons to cancel orders.”The former CII chairman Rahul Ahuja said Shipments to Iran, Egypt, UAE are held up. Orders are not coming from Europe and middle east and the input cost has gone very high.Another leading garment exporter, Madhur Gupta of Madhur Impex and Rajesh Gupta of National Yarns pointed out that the current disruption has created a pre-COVID-like situation, which could derail business momentum. They cautioned that such instability is likely to shake the confidence of foreign buyers, leading to long-term adverse effects on export relationships.Pranav Chadha, MD, BAUM Tools and a recognised star exporter, emphasized the urgent need for government support, stating that the situation demands immediate relief measures to safeguard the export sector.Units may not survive: Indermohan Singh Director Turbo Tools, a leading exporter of engineering goods to the UAE, warned that if the current situation persists for a few more weeks, many units may not survive.Pankaj Sharma informed that ATIU has formally written to the Ministry of Commerce, urging immediate intervention and relief measures for exporters, keeping in view the prolonged uncertainty and severity of the crisis.


