Effect of war in Gulf: Wheat export opened after 3 years, again in crisis, threat to flour industry of UP

Lucknow . The export of wheat and wheat products, which is going to start in Uttar Pradesh after three years, is being affected by the increasing war in West Asia. Exports to Gulf countries are once again shrouded in uncertainty due to increased risks on sea routes, shipping crisis and expensive insurance costs.

The Government of India had approved the export of limited quantities of 25 lakh metric tonnes of wheat and 5 lakh metric tonnes of wheat products (flour, maida, semolina) in February 2026. This step was considered important towards partially resuming exports after the ban imposed in 2022, so that farmers can get better prices.

However, exporter organizations say that due to the movement of ships in the Gulf region being affected and war risk insurance being expensive, many new export deals have been postponed. According to Deepak Bajaj, General Secretary of the Indian Industries Association and President of UP Roller Mills Association, Uttar Pradesh is among the largest wheat producing states in the country and the state’s share in the export of wheat-based products is about 25 to 35 percent.

He said that with the opening of exports, business opportunities worth about Rs 1500 to 1700 crore were expected to be created for UP. This was to benefit the milling and processing industries of about 20 districts including Kanpur, Agra, Aligarh, Ghaziabad, Meerut and Bareilly.

Mills in these regions have been supplying flour, maida and semolina to the Gulf countries UAE, Saudi Arabia, Oman, Kuwait and Qatar. But if the war situation in the region continues for a long time, then the shipping cost may increase by 40 to 50 percent and the insurance premium is also likely to double. In such a situation, the export market, which opened after three years, is in danger of being affected again, due to which the flour industry and wheat trade of Uttar Pradesh may face a big blow.