Even as a two-week ceasefire between the US and Iran has brought temporary relief, exporters in Punjab say it remains a “wait and watch” situation. Many shipments are stuck midway, and communication with clients in West Asia, particularly Iran, has been disrupted. Industry leaders emphasize that the restoration of infrastructure and normalcy in war-affected regions will determine when business can truly resume.
Rahul Ahuja, managing director of Ludhiana-based Rajnish Industries Private Limited and past chairman of CII Punjab, stated, “The ceasefire is good news, but exporters like us still need to wait. First of all, we need to contact our clients in Iran to check if they are safe, the extent of damage in their area, and when they will need the automobile parts we export to that country. Their government first needs to set the infrastructure in order. Therefore, I think for exporters of auto parts, textiles, garments, etc., in West Asia, it is a wait-and-watch situation”.
Highlighting the disruption, he added, “One of our shipments, which was on its way to Iran, when war was announced, came back from midway at Mumbai port and is still there. Two shipments were ready in February, which are in our factory only, as we halted their export due to the war situation. We are yet to get in touch with our clients. Except for one client, the others are not even responding. We pray for their safety.”
Pankaj Sharma, president of the Association of Trade and Industrial Undertakings (ATIU), said exporters are grappling with widespread logistical challenges due to disruptions in cargo movement through the Strait of Hormuz.
“I am an indirect exporter of auto parts as I supply to the exporters. However, we were currently experiencing significant operational challenges arising from disruptions affecting all cargo transiting through the Strait of Hormuz. The most impacted destinations included Dubai, Dammam, Riyadh, Qatar, Bahrain, Kuwait, and Iraq, where normal vessel calls have been severely affected. As a ceasefire has been announced for two weeks, let’s hope that it stays further as well.”
He said shipments of many exporters are stuck midway. “First of all, they have to proceed ahead. And later see what else to export depending upon the demand ahead.”
Sharma stated that shipments have been diverted or returned unexpectedly. “Due to the situation, shipping lines had diverted vessels to alternative ports such as Sohar, Fujairah, and Khor Fakkan. These ports, being considerably smaller and not designed to handle such sudden surges in volume, are now facing acute congestion and operational delays,” he said.
As the congestion intensified, Sharma pointed out that several shipping lines had unilaterally discharged cargo at distant ports, including Chennai, Hong Kong, and other non-designated locations, issuing ‘End of Voyage’ notices without prior consultation with shippers. This practice has created severe logistical and financial burdens, as shippers lack the infrastructure, local support, and operational capability to manage cargo from these unexpected ports.
“So first of all, exporters need to trace their stuck shipments and move them ahead or bring them back. Hence, it is a daunting task ahead for a businessman as life needs to start as normal first of all in the war-affected countries. Business can wait for some time,” Sharma said.
ATIU has written to Union Industry Minister Piyush Goyal seeking urgent intervention to support exporters.
According to the ATIU letter written to Union Minister Piyush Goyal, Punjab has approximately 8,000–10,000 exporting units (direct and indirect), of which 3,000–4,000 units are significantly exposed to the West Asia and global trade routes. Currently, 1,500–2,500 units are seriously affected due to disruptions in orders, payments, and logistics.
Vijay Sharma, MD, FAS International and head of the export unit of ATIU, said, “The lack of remittances from customers and absence of support from financial institutions have made it extremely difficult for exporters to sustain and plan operations. Now that a ceasefire has been announced, we can just hope that it continues further, but we still need to wait for the business to start operating in a normal manner.”
Rakesh Kapoor, MD, Paramount Impex, pointed to rising costs and buyer uncertainty. “Due to the restrictions imposed by shipping lines, we are already experiencing losses due to the sudden charge hike by the shipping lines, as buyers are already looking for reasons to cancel orders.”
Madhur Gupta of Trimurti Impex and Rajesh Gupta of Trimurti Yarns said the disruption resembled a pre-COVID-like scenario. “It could derail business momentum. They said that though a ceasefire has been announced, we need to first see the long-term adverse effects of this war,” Gupta said.
Pranav Chadha, MD, BAUM Tools, emphasised the need for immediate government support to safeguard exporters. Sharma further added that the LPG crisis due to the West Asia crisis had led to labour shortage as it forced labourers from many units to go to their villages.
- Ludhiana (garments, yarn, engineering): 800–1,200 units
- Jalandhar (hand tools, sports goods): 300–500 units
- Mandi Gobindgarh/engineering clusters: 200–400 units
- Other clusters (Derabassi, Amritsar, etc.): 200–400 units
Curated by James Chen
