Bhopal (Madhya Pradesh): The escalating tensions across the Middle East and Gulf region have begun casting a shadow on Madhya Pradesh’s export sector, disrupting shipments of commodities worth nearly Rs782 crore to these markets.
Several key industries that depend heavily on the war-hit region for trade are now feeling the strain as uncertainty over maritime routes and security concerns in the Red Sea region slow the movement of goods.
Export data for April 2024-March 2025 shows that the state exports commodities worth thousands of crore globally, with pharmaceuticals, textiles and rice among the major sectors that depend on Middle Eastern markets.
4 lakh tonnes of basmati rice stranded
Exports of rice from Madhya Pradesh between April 2024 and March 2025 were valued at about Rs4,054 crore. In March 2025, rice exports from the state were valued at around Rs336 crore.
Traders say basmati rice exports have almost come to a halt in the past one week. It is estimated that more than four lakh tonnes of basmati rice are currently stranded, leading to a fall in prices.
Farmer Sourabh Solanki said that from last week farmers have stopped selling rice due to the price decline. Prices that had reached around Rs4,400 per quintal have dropped to nearly Rs4,000, reflecting a 10-15% fall in the market.
Farmer leader Kedar Sirohi warned of additional pressure from fertiliser imports and diesel availability, both of which depend on global supply chains. Diesel demand is currently high due to the harvesting season, and any shortage could increase transportation costs and further affect mandi prices.
Textile, garment exporters face shipment delays
Exports of cotton yarn between April 2024 and March 2025 were around Rs7,940 crore, accounting for about 12.22% of the state’s total exports. In March 2025, exports from this segment were around Rs748 crore.
Ready-made garments of all textiles from the state recorded exports worth around Rs327 crore during the same period.
Akshay Jain, president of the Retail Garment Association, said business activity has slowed considerably due to disruptions in shipping routes.
He said exporters usually dispatch consignments ahead of Ramzan, but this year only partial shipments could be sent as several exporters were unable to dispatch their full consignments. Jain said many exporters have decided to hold back goods temporarily as consignments getting stuck midway during transit could lead to major financial losses.
Rising freight costs hit pharma export competitiveness
Between April 2024 and March 2025, exports of drugs and pharmaceuticals from the state were valued at about Rs13,830 crore, accounting for 21.29% of the state’s total exports. In March 2025 alone, pharmaceutical exports from the state were valued at around Rs1,318 crore.
Industry stakeholder Gautam Kothari from the Pithampur industrial area said maritime freight costs have risen by 60-100%, increasing logistics expenses and reducing the global competitiveness of Madhya Pradesh’s pharmaceutical exports by nearly 3-5%.
The escalating tensions across the Middle East and Gulf region have begun casting a shadow on Madhya Pradesh’s export sector, disrupting shipments of commodities worth nearly Rs 782 crore to these markets.
Several key industries that depend heavily on the war hit areas for trade are now feeling the strain, as uncertainty over maritime routes and security concerns in the Red Sea region slow down the movement of goods.
Export data for April 2024-March 2025 shows that the state exports thousands of crores worth of commodities globally, with pharmaceuticals, textiles and rice among the major sectors that depend on Middle Eastern markets.
Textile and Garment Exports
Exports of cotton yarn, between April 2024 and March 2025 were around Rs 7,940 crore, accounting for about 12.22% of the state’s total exports. In March 2025, exports from this segment were around Rs748 crore.
Apart from this, ready-made garments of all textiles from the state recorded exports worth around Rs327 crore during the same period. Akshay Jain, President of the Retail Garment Association, said that business activity has slowed considerably due to disruptions in shipping routes.
He said that exporters usually dispatch consignments ahead of Ramzan, but this year only partial shipments could be sent, as several exporters were unable to dispatch their full consignments.
Jain said many exporters have decided to hold back goods temporarily, as consignments getting stuck midway during transit could lead to major financial losses.
Pharmaceuticals Sector
During the period from April 2024 to March 2025, exports of drugs and pharmaceuticals from the state were valued at about Rs13,830 crore, making it 21.29% to the total exports.
In March 2025 alone, pharmaceutical exports from the state were valued at around Rs1,318 crore. Industry stakeholder Gautam Kothari from Pithampur industrial area said that maritime freight costs rising by 60-100% have increased logistics expenses, reducing the global competitiveness of MP’s pharmaceutical exports by nearly 3-5%.
Rishita Tomar
