Bhopal News: Gulf Conflict Disrupts MP Exports, Industries Hit Hard

Bhopal (Madhya Pradesh): The ongoing conflict in the Gulf region involving Iran, the US and Israel has begun to impact exports from Madhya Pradesh, with industries reporting a sharp decline in shipments.

Sectors such as food and grain supply, auto parts and pharmaceuticals are among the worst affected. Exports from the state have dropped by 30% to 40%, officials said.

An official from the Directorate General of Foreign Trade (DGFT) said exports across several sectors in Madhya Pradesh have declined sharply. Supply of plastic raw materials has also been disrupted, affecting a large number of factories in Indore district.

The official said rice, medicines and auto parts are key export items from the state. Rice exports from Raisen and Bhopal districts to Gulf countries, including Iran, have come to a halt, as transporters are unwilling to ship consignments amid the conflict.

Mandideep-based industrialist Rajeev Agrawal said industries dealing in packaged food are facing severe losses due to stalled exports.

Spice exporters are also affected, as unsold stock risks losing quality over time, making it difficult to market. Other food-related industries are facing similar challenges.

With exports disrupted, industries are being forced to store goods in cold storage, increasing operational costs.

Pithampur-based industrialist Vinod Singh Chouhan said his unit is operating at around 50% capacity due to multiple challenges, including rising input costs.

Industrialists said several units in Pithampur have reduced production to 50% to 60% and warned that a prolonged conflict could further impact production and exports.