Local industries feel heat of Global conflict

Export delays, supply chain disruptions mount as US–Israel–Iran conflict rattles industries across MIDC Waluj, Shendra, and DMIC; leaders warn of shutdowns if crisis deepens

Lokmat News Network

Chhatrapati Sambhajinagar

The city is struck by the impact of the US-Israel conflict with Iran that began on February 28. Global supply chain disruptions, including blocked shipping routes through the Middle East, are affecting industries in MIDC Waluj, Shendra 5-Star Industrial Area, DMIC, and other industrial hubs.

Thousands of units manufacturing automobile parts, pharmaceuticals, beverages, agro components, and other goods export products via Dubai, a key transit and warehouse hub. Industry bodies CMIA, CII, Massia, and EEPC have warned that prolonged conflict could disrupt this critical export corridor. Containers are delayed at ports like JPNT, causing longer shipping times and supply chain hurdles for goods heading to Europe and other markets.

Industrial leaders caution that if the war continues, it could create serious economic challenges for the region, impacting both manufacturers and local livelihoods. 

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Container return disrupted

Port closures, including JPNT, are delaying container returns to Chhatrapati Sambhajinagar, causing major losses for local manufacturers and export-dependent industries.

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Marathwada Industries Under Export Pressure

 LPG supply key concern

“We may not face major crude oil shortages as alternative sourcing from Russia remains possible. However, LPG availability is a serious concern. Currently, supply is divided roughly 60:40 between commercial and domestic sectors. If the war continues, priority may shift to domestic use, affecting industrial operations.”

- Pritish Chatterjee, Convener, Engineering Export Promotion Council (EEPC)

Gulf trade under watch

“Only a few containers are currently delayed due to rerouting and port congestion. However, prolonged geopolitical tensions may increase transit time and freight costs. Marathwada exports engineering goods, auto components, pharmaceuticals, steel, agro and processed food products to Gulf nations, a vital market for regional MSMEs.”

- Utsav Machhar, President, CMIA

Peak season concerns

“Supply of supply of critical imported parts may face disruptions, especially as March is a peak period for industries. Electronic component manufacturers could also experience similar difficulties if the situation continues.”

- Prashant Narwade, Chairman, CII Marathwada Zone

Containers return, costs may surge

“After the war began, containers from some Chhatrapati Sambhajinagar units were held at JNPT and are now being returned. When exports restart, freight rates may rise 10 - 100 per cent, disrupting shipments like during Covid. If the conflict continues, container shortages and a disturbed cash cycle will severely impact industries.”

- Rishikesh Jaju, Head, Trade Facilitation Cell, CMIA

Agri exports hit by war

Nearly 80 Massia member industries export to Europe via the Arabian Gulf. The ongoing conflict has disrupted shipments, especially in the agri sector, forcing some units to temporarily suspend export production. An early end to the war is vital to avoid deeper losses.

- Arjun Gaikwad, President, Massia

- (As told to Raj Patil)

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