The ongoing crisis in West Asia has dealt a severe blow to India’s seafood exports, particularly to Gulf nations, with shipments coming to a near standstill.

Industry sources estimate that exports to West Asia account for around ₹2,000–2,500 crore, constituting roughly 3–4 per cent of India’s total seafood exports. However, uncertainties surrounding port operations and vessel movements in the region have disrupted trade flows, effectively halting shipments.

The sector had shown signs of recovery following progress on trade agreements, including the Free Trade Agreement with the EU and a joint statement with the US on an interim framework ahead of a Bilateral Trade Agreement. Fresh orders from US buyers had begun to materialise, and further momentum was expected during the Seafood Show in Boston. However, the escalation of the West Asia conflict has derailed these prospects due to heightened uncertainty in freight rates and logistics.

Re-routing of consignments has also been limited, as major shipping lines remain reluctant to deviate from the Red Sea–Suez Canal–Mediterranean Sea route. Alternative routes have significantly increased transit times to Europe and the US East Coast, while shipments to the US West Coast via the Pacific Ocean are also taking longer.

This has resulted in extended turnaround time for containers and vessels, delaying deliveries. At the same time, higher oil prices have driven up freight costs, compounded by increased distances. Exporters are also grappling with steep insurance premiums and war-risk surcharges, adding to the financial strain. Rising fuel costs are further adding to production expenses, including the transportation of raw materials and finished goods to ports, the sources said.

Alex K. Ninan, Vice President of the Seafood Exporters Association of India, said that nearly 90 per cent of exports to Gulf markets have come to a halt due to the disruption in shipping services. Longer transit times have heightened the risk of spoilage of perishable goods like seafood, prompting exporters to either hold back or cancel shipments.

With shipping costs, insurance charges, and war-risk premiums continuing to rise, many exporters are delaying consignments in anticipation of a more stable situation.

Official figures say that marine products exports to West Asia in FY25 totalled 65,956 tonnes in quantity terms and were valued at ₹2,328 crore ($278 million). West Asia remains a key market driven by high demand for frozen shrimp, finfish, etc.

Published on April 17, 2026