The heightened tension in the West Asia region due to the joint strike of US and Israel on Iran, has reportedly led to supply disruptions of shipments enroute to and from India. According to analysts, if the shipments are stuck at international borders for a prolonged period of time, then, this could lead to a supply shortage and a resultant price hike of commodities being transported by those vessels. Price increase of pulses onions Already, the conflict has begun to cast impact on Indian wallets. According to a report of ‘The Economic Times’, prices of household staples like pulses and onions have begun to rise. According to the ‘Department of Consumer Affairs’, the average retail price of 1 kg of the agricultural commodity onion is currently ₹27.49. While, prices of Bharat Dal is ₹82.74 per kg. India’s edible oil imports at risk, warns industry India’s imports of edible sunflower oil face disruption from the escalating US-Iran conflict, industry bodies said to the news agency, PTI. India imports around 16 million tonnes of edible oil annually, of which sunflower oil accounts for roughly 20% sourced primarily from Russia, Ukraine and Argentina. “So far there has been no impact. But if the conflict continues, supply of sunflower oil could be disrupted as shipments have to take a detour,” Solvent Extractors Association of India (SEA) Executive Director B V Mehta said to PTI. Data from ‘Department of Consumer Affairs’ showed price pressure on sunflower oil. Currently, the average retail price of 1 kg of the edible oil costs ₹176.27. Rise in shipping cost for imports of goods from West Asia to India The transportation costs have also risen as shipping companies have already begun imposing emergency conflict surcharges on cargo moving through the Middle East. All eyes on Strait of Hormuz! Iran has claimed closure of the largest oil supply route of the world, the Strait of Hormuz. Already, there is hardly any movement of vessels through this narrow sea passage. Shipments could face delays if vessels are forced to reroute away from the Red Sea. “The closure of so many ports will lead to congestion and a shortage of containers,” Soluble Fertilizer Industry Association(SFIA) President Rajib Chakraborty told PTI. Food items that India imports from West Asia? India imports a variety of food items from the Middle East, primarily dried fruits, nuts, and specific agricultural commodities. Key imports include dates, almonds, pistachios, figs, raisins, and high-quality saffron, mainly sourced from Iran, UAE, and Iraq. Other significant imports include fresh fruits, edible oils, spices, and pulses. Dry Fruits Nuts: Dates are highly imported from UAE, Iran, and Iraq. Other key nuts include almonds, pistachios, figs, and raisins. Saffron: Saffron is a major import from Iran. Fruits Vegetables: Various fresh fruits are imported, particularly from the UAE. Other Items: Vegetable oils, pulses, cashew, cocoa products, and processed food items are also imported. Above items may become expensive if the vessel passage through the Hormuz Strait remains obstructed for a prolonged period of time. Post navigation ‘India has enough oil inventory to deal with West-Asia conflict’:Petroleum Minister Puri says Centre has no plans to increase petrol diesel prices
