Crisis on Barwani cotton trade due to Iran-Israel war
By yash chouhan 2026-03-16 16:56:37
Iran-Israel war's impact on Barwani's cotton trade, fear of export stalling
The impact of the Iran-Israel war is now visible on the cotton trade of Barwani district of Madhya Pradesh. Increasing uncertainty in international sea routes may affect imports and exports, which has increased concerns among local traders.
According to Gopal Tayal, a cotton trader from Barwani and president of the Cotton Association, India's cotton trade largely depends on international import-export. India imports long staple cotton from countries like America, Brazil and Australia.
Transportation costs will increase due to sea routes being affected
Gopal Tayal, local cotton trader of the district and president of the Cotton Association, said that in the current war situation, many countries including America are involved in it in some way or the other, due to which global business activities are being affected. Important sea routes near Iran, especially the Gulf of Hormuz, have become extremely sensitive.
If this route is affected, ships will have to take a longer detour through Africa, which will significantly increase transportation costs and make trade expensive.
Pressure may increase on cotton and textile industry
India imports cotton in large quantities from America, while the clothes and readymade garments produced here are exported to many countries in Europe. But due to the war, instability in the markets of Europe has also increased.
If exports are disrupted, finished goods may remain stuck within the country, which will increase the pressure of goods in the market and the textile industry may have to suffer huge losses.
Transportation is expensive, prices of clothes increase by 30-35%
Traders say transportation costs have increased due to disruption in ship movement in the Strait of Hormuz and costly war risk insurance. Due to increase in the prices of raw materials, the prices of finished clothes are also increasing by about 30-35 percent and exports have almost come to a standstill.
Traders said that it is necessary to establish peace soon, so that international trade can become normal and the cotton and textile industry can be saved from losses.
