Published Mar 13, 2026 | 7:00 AM ⚊ Updated Mar 13, 2026 | 7:00 AM
Andhra Pradesh Chief Minister N Chandrababu Naidu has asked district collectors to watch closely for disruptions.
Synopsis: The war in West Asia is disrupting shipping routes and starting to affect exports from Andhra Pradesh and Telangana, hitting farmers, exporters and MSMEs. Cancelled Gulf orders have forced bananas, mangoes and eggs back into domestic markets, pushing down prices and leaving poultry farmers and exporters facing losses, while rice and shrimp shipments are slowing. Shipping delays are also affecting Hyderabad’s pharmaceutical supply chains and other industries, with exporters warning of large losses if the situation persists.
The war in West Asia is starting to hurt the export-oriented economies of Andhra Pradesh and Telangana, as disrupted shipping routes hit farmers, exporters and MSMEs in the two Telugu states the hardest.
Banana and mango growers in Andhra Pradesh—one of India’s largest banana-producing states—are facing cancelled orders from importers in Gulf countries as the conflict drags on.
Cancelled shipments have pushed fruit back into domestic markets. Prices have dropped, and many farmers are resorting to distress sales to avoid total losses.
Andhra Pradesh Chief Minister N Chandrababu Naidu has asked district collectors to watch closely for disruptions.
“You have to move to the towns and villages. Ensure that the war in Middle East does not affect our people. Make alternative arrangements for clearing banana stocks and eggs that are piling up,” he told them at the collectors’ conference in Amaravati on Wednesday, 11 March.
Naidu has set up a three-member ministerial committee to monitor the situation. Civil Supplies Minister Nadendla Manohar will head the panel, with Agriculture Minister K Atchannaidu and Finance Minister Payyavula Keshav as members.
The committee will track LPG and essential commodity supplies and watch for shortages.
Officials have also been asked to coordinate with the Union government to prevent supply chain disruptions. “Take active interest in ensuring that no sector is adversely affected by the war in Middle East,” Naidu told collectors.
Tirupati, Chittoor and Annamayya districts in Andhra Pradesh host hundreds of commercial farms with more than 48 lakh layer birds. India normally exports close to one crore eggs a day to Gulf countries, with a large share coming from southern states, including Andhra Pradesh.
But as export orders stall, millions of eggs have flooded domestic markets, leading to a sharp fall in prices.
National Egg Coordination Committee (NECC) rates are now around ₹4.20 per egg, while wholesale prices in Chittoor and nearby mandals have dropped to ₹3.30–₹3.50. Production costs are close to ₹4.50 per egg. Farmers are losing ₹1 to ₹2 on every egg sold.
Hundreds of poultry farms in Palamaner, Gangavaram, Punganur and Madanapalle are operating at a loss. Rising feed costs and transport bottlenecks are adding further pressure.
The spillover is visible in Telangana as well. Surplus eggs from stalled exports are entering domestic markets, and prices in Hyderabad—one of the largest poultry consumption centres in the state—have dropped sharply in recent days.
Rice exports are facing similar disruption. Andhra Pradesh and Telangana are major contributors to India’s rice shipments to West Asia. Cargo delays and payment uncertainty mean stocks may pile up and revenues may be delayed, millers and farmers said.
Seafood exporters are also under strain. Shrimp exports worth about $220 million to the region—much of it from Andhra Pradesh—have fallen in volume. Exporters are trying to find alternative markets or absorb mounting losses.
The Micro, Small and Medium Enterprises (MSME) sector across both states is also feeling the strain.
In Telangana, Hyderabad’s pharmaceutical ecosystem—which includes thousands of MSME suppliers producing active pharmaceutical ingredients, formulations, vaccines and AYUSH products—is facing supply chain disruptions.
The Pharmaceuticals Export Promotion Council of India (Pharmexcil) has warned that a complete halt in March exports to the Gulf Cooperation Council and the West Asia–North Africa region could lead to losses of ₹2,500 crore to ₹5,000 crore for India’s pharmaceutical industry.
Telangana accounts for a significant share of those exports.
Shipping disruptions across key trade routes are driving the problem. Traffic through the Strait of Hormuz and the Red Sea has become uncertain.
Insurance premiums have risen sharply, transit times have lengthened, and importers in the UAE, Saudi Arabia, Qatar and Oman are cancelling orders.
Two vessels carrying nearly 3,000 tonnes of chemical cargo from Gulf suppliers for Hyderabad-based pharmaceutical companies remain stuck at origin ports because of the conflict.
Engineering goods manufacturers, chemical units and auto-ancillary MSMEs are facing similar problems. Freight rates have risen by 25–30 percent as ships reroute around the Cape of Good Hope, adding 15–20 days to shipping times.
Telangana also accounts for about 8.1 percent of India’s total remittances, much of it sent by Telugu migrants working in construction, oil services and hospitality across Gulf countries. Any prolonged disruption in the region could therefore hit household incomes in the state as well.
