Part 2 News Impact of Iran War on Industries

“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)

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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

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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

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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

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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