West Asia Tensions Hit Shrimp, Poultry And Coconut Exports From Andhra And Other Indian Markets
After recovering from the increased tariffs by the US, exporters are now facing fresh challenges due to the US-Israel-Iran war.
Published : March 11, 2026 at 3:36 PM IST
Amaravati: The escalating tensions in West Asia have sent shockwaves through several agriculture-related sectors in India, such as shrimp exports, poultry shipments, and coconut trade with Gulf countries. Farmers and exporters, especially in Andhra Pradesh, are facing major transport disruptions, resulting in falling prices and increasing financial distress.
After a glimmer of hope for relief from the increased tariffs by the US, exporters are now facing fresh challenges due to the US-Israel-Iran war.
Impact on shrimp exports
Containers carrying shrimp that were already shipped from the state have reportedly returned without being delivered. Several buyers from Gulf markets have even started cancelling previously placed orders, worsening the situation further for exporters and farmers alike.
“The price of 100-count shrimp has reportedly dropped by around Rs 30,000 per tonne. We are now struggling to sell our harvest, and storage options are limited, adding to our hardships,” said a farmer.
Andhra Pradesh exports about 4.25 lakh tonnes of shrimp every year to international markets, with nearly 40–45 per cent of these exports going to the US, while the rest are shipped to countries such as China and various nations in Europe.
“We usually sign agreements with farmers based on expected orders for the next two to three months, ensuring steady procurement. However, the sudden escalation of conflict has disrupted these plans. The sector may not see improvement until the next production season,” said a representative of the exporters’ association.
Last year, after tariffs increased in the US market, the exporters began focusing more on alternative destinations, especially tourism-driven markets in Gulf countries.
“Shrimp consignments were transported by sea in containers from ports such as Visakhapatnam and Chennai to destinations like Dubai and other Arab cities. However, the war has affected tourism in these regions, reducing demand for seafood in hotels and restaurants,” the association member said.
He believed that the demand for Indian shrimp would revive only when tourism activity in these destinations picks up again.
Impact on poultry sector
Poultry farmers said that due to disruptions in exports to Gulf countries, egg prices have dropped sharply, causing financial strain for them, even though consumers have not yet seen a similar decline in retail prices.
“Egg prices tend to dip slightly in February every year. However, this time the fall has been steeper because of the ongoing conflict in West Asia. Until recently, we were receiving around Rs 5.50 per egg, but the price has now fallen to about Rs 0.60, which is significantly below the production cost,” said a farmer.
Nearly 35 to 40 lakh eggs are exported daily to Gulf countries in about 8 to 10 containers from Namakkal in Tamil Nadu, a major hub of the poultry industry. But these exports have come to a halt due to the war situation.
In some cases, consignments that had already been shipped had to be brought back. As these eggs are now entering domestic markets, supply has increased sharply, pushing prices down.
States located close to Tamil Nadu, particularly Andhra Pradesh and Kerala, are witnessing the strongest impact of this sudden supply shift.
Data released by the National Egg Coordination Committee (NECC) shows that the recommended farm-gate price dropped noticeably in the first ten days of March.
On March 1, the committee suggested a price of Rs 500 for 100 eggs in the Vijayawada region. By March 10, the price had fallen to Rs 410. “In Visakhapatnam, the price did not cross Rs 465 per 100 eggs during the same period, while in West Godavari district it remained below Rs 460,” per the NECC.
Meanwhile, in other cities such as Kolkata, Mysore, Pune, and Bengaluru, prices occasionally touched Rs 530 per 100 eggs.
Despite the sharp fall in farm prices, consumers have not experienced a similar reduction at retail outlets. Traders say wholesalers are still selling stocks that were purchased earlier at higher rates, which is preventing a significant drop in market prices. They believe the situation will improve soon.
Dr K. Somireddy, treasurer of the AP Poultry Federation and director of Srinivasa Farms, said the current situation is temporary.
“Exports have stopped due to the war, which has increased supply in the domestic market. Earlier, farmers received around Rs 5.50 per egg, but now it is about Rs 3.60, while the production cost itself is about Rs 5.25. However, this is likely to stabilise within 10 to 15 days,” he said.
According to official estimates, egg production in Andhra Pradesh reached about 2,700 crore eggs in 2024–25 and is expected to rise to around 2,950 crore in 2025–26. The sector supports nearly 7.5 to 8 lakh commercial layer farmers and 5,500 to 6,000 broiler farmers across the state, making it a crucial livelihood source.
War hits coconut exports
The ongoing tensions in Gulf countries have also affected India’s coconut trade, causing concern among farmers and traders in southern states. Coconut consignments meant for export have been stuck at major ports, leading to a sharp fall in prices in local markets, particularly in Andhra Pradesh and Tamil Nadu.
Southern states such as Andhra Pradesh, Tamil Nadu, Kerala, and Karnataka are well known for large-scale coconut cultivation. Among them, Andhra Pradesh and Tamil Nadu export significant quantities of coconuts to Gulf countries every year. The demand usually rises during the holy month of Ramadan, prompting traders to prepare large consignments for export.
Accordingly, coconuts were packed and shipped to Gulf destinations, including Kuwait, Oman, Dubai, Iran, and Saudi Arabia. However, due to the war situation, export shipments have been disrupted. Containers loaded with coconuts are currently stranded at major Indian ports such as Mumbai, Chennai, and Thoothukudi.
Traders say there is uncertainty over when the conflict will ease and when exports to Gulf countries will resume. “The coconuts that were meant for overseas markets are being diverted to local markets at lower prices, affecting farmers’ earnings,” they said.
The price fall has been clearly visible in the famous coconut belt of Konaseema in Andhra Pradesh. Just last month, during the Maha Shivaratri festival season, the market witnessed strong demand. At that time, 1,000 green coconuts were selling for Rs 18,000 to Rs 20,000, while prices of dried coconuts were also encouraging.
Traders were expecting even better prices during the upcoming Sri Rama Navami season. However, the export disruption has reversed the trend.
Market analyst Appana Kaliprasad said that the price of 1,000 coconuts has now dropped to around Rs 13,000–Rs 14,000, significantly affecting farmers and traders.
“With export containers still stuck at ports and no clarity on the resumption of shipments, coconut growers in the region are worried that the price slump may continue if the situation does not improve soon,” he said.
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