West Asia tensions hit Rudrapur exports, raise industrial costs

RUDRAPUR: Escalating tensions between Iran, the United States and Israel have begun to cast a shadow over Rudrapur’s export-driven economy in Udham Singh Nagar, disrupting trade and industrial activity. Exporters and industrialists report a sharp fall in shipments to West Asian countries, along with rising production costs driven by volatile fuel prices. The impact is most visible in exports of rice and frozen vegetables such as peas, beans, carrots, bitter gourd, ridge gourd, spinach and okra. While the district typically exports nearly one lakh quintals of these products, shipments to West Asia have nearly come to a standstill since the conflict began, hitting local traders hard. Exporters said consignments to nearly 10 West Asian countries have halted, though limited shipments continue to South Africa, Mexico, Japan, Singapore, Mozambique, Kenya and parts of West Africa. “The Gulf countries account for the largest share of our rice and frozen vegetable exports, but shipments have stopped for several days due to the conflict. We are trying to offset losses by exporting to other countries, but normal trade will resume only when the situation stabilises,” said exporter Ashok Agarwal. The disruption has also affected rice mills, with large quantities of processed stock lying unsold, increasing financial pressure across the supply chain. Exporters added that, despite indications of policy support, relief on the ground remains limited. Meanwhile, industries in Pantnagar, Sidcul and nearby areas are facing rising input costs. Fluctuating crude oil prices have pushed up fuel costs, leading to higher electricity tariffs, transportation expenses and raw material prices. “The conflict seems to have derailed almost all global trade activities, resulting in economic instability. However, exports to non-Gulf countries are continuing,” said Ajay Tiwari, former president of the Sidcul Entrepreneur Welfare Association. Industrialists warned that micro, small and medium enterprises (MSMEs) are the worst affected due to their limited capacity to absorb rising costs. Many units are considering cutting production or raising prices, which could impact demand. “Industries are under severe stress. Production has declined, and adverse effects are visible. We have urged the government to ensure policy support to keep operations running,” said Shrikar Sinha, president of the association. BP Singh, HR manager at a Sidcul-based company, said, “The impact of the conflict is clearly visible on supply chains. Raw material prices remain unstable, and timely availability is often an issue. Diesel and electricity costs have also risen sharply.”