TN's export engine stalls as West Asia war chokes egg, knitwear commerce

Apart from coping with the scare over LPG shortage, which has been triggered by the ongoing war between Israel-US and Iran, Tamil Nadu is also staring at another major crisis, one that strikes at the very bread and butter of several lakh families.

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The conflict, located thousands of miles away, has completely paralysed the state’s massive export of eggs, meat and other highly perishable goods to the Gulf countries. This has turned what began as a shipping disruption into a full-blown livelihood emergency for poultry farmers, exporters and workers across Namakkal and Tiruppur, two of Tamil Nadu’s major business centres.

India's 'Egg City' faces threat

Namakkal, hailed as India’s “Egg City”, thanks to its massive poultry industry, produces 6-7 crore eggs daily and has long relied on exports to the UAE, Qatar, Oman and other West Asian nations.

These shipments have come to a complete halt ever since the war broke out on February 28. Ports have remained closed, airspace restricted, and shipping routes have been severed, forcing exporters to watch helplessly as consignments remain stranded at sea or at Navi Mumbai’s Jawaharlal Nehru Port.

More than 70 containers carrying nearly 3.5 crore eggs have been stuck on a single vessel since the day the war began. In total, nearly six crore eggs meant for Gulf markets have not reached their destinations.

Farmers, traders lose Rs 5 cr daily

Poultry farmers and exporters in the Namakkal cluster are losing nearly Rs 5 crore every day. Domestic egg prices have crashed from Rs 5.40 to as low as Rs 3.30-Rs 4.30 per egg, with farmers forced to sell below the production cost (Rs 4.50). Oversupply has flooded local markets, and cold-chain eggs with printed expiry dates risk spoilage if returned.

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P V Senthil, general secretary, Namakkal District Egg Export Traders Association, told The Federal, “Ports are closed, and airspace restrictions have made it impossible to send perishable items like eggs. The entire process from procurement to packing and cargo distribution is at risk.”

The Namakkal-based All India Poultry Product Exporters Association has appealed to the Centre and the Agricultural and Processed Food Products Export Development Authority (APEDA) for urgent intervention. APEDA’s Chennai regional head, Shobana Kumar, said talks with shipping lines in Dubai and a global port operator are “showing positive signs”, and shipments could move soon. The Centre has also been requested to urgently take up the matter with the shipping ministry.

To ease the immediate burden on exporters, the Jawaharlal Nehru Port authorities have announced a complete waiver of container yard rental charges for 15 days (February 28 to March 14) and an 80 per cent discount on electricity for refrigerated containers carrying perishable goods.

Agony for 'Knitwear Capital' Tiruppur

The crisis is not limited to eggs. Tiruppur or the country’s “Knitwear Capital”, which sends 80 per cent of its shipments by sea to Europe, Americas and the Middle East, is reeling under 20-30 day delays because vessels must take the longer Cape of Good Hope route instead of the Suez Canal.

Transportation costs have multiplied, summer orders are delayed, payments are stuck, and cash flow has dried up. K M Subramani, leader of the Tiruppur Exporters Association, told this website, “Delivery failures are raising transport costs significantly. Peace is needed for smooth shipments.”

Also read: As Iran war hurts international trade, inflation looms large for the common man

Vegetable and fruit exports from Tiruchirapalli International Airport (normally 20 tonnes daily to Abu Dhabi, Dubai and Sharjah) have also been grounded by cancelled flights.

War impacts other sectors too

Nationally, the war has triggered far wider shocks. The closure of the Strait of Hormuz, through which 20 per cent of global crude oil passes, threatens India’s daily imports of 2.5–2.7 million barrels from Iraq, Saudi Arabia, UAE and Kuwait. LPG and LNG supplies have been disrupted; shipping and insurance costs are soaring; and inflation is expected to spike.

Other ripple effects include potential shortages of fertilisers, basmati rice export losses (50 per cent of which go to Gulf nations), electronics shipments worth billions to the UAE, and risks to the safety of nearly 10 million Indians living in West Asia.

Also read: What happens to India’s fuel supply if the Iran conflict worsens? | AI With Sanket

With summer demand already weak and additional pressure for the occasions of Ramadan and Lent, poultry farmers say they have no buffer left. The Tamil Nadu Poultry Farmers Association and egg exporters are urgently calling on the Centre to negotiate safe passage for essential perishable shipments and to explore alternative markets before the losses become irreversible.

As one farmer put it, “This is no longer just about eggs or gas cylinders; it is about our daily bread.”