The war in West Asia has disrupted India’s livestock exports to Gulf countries that are heavily dependent on meat from India, leading to shipment delays and cancellations.
The slowdown is also affecting leather exporters, who depend on raw hide, a byproduct of livestock processing.
The Compound Livestock Feed Manufacturers Association (CLFMA), an apex industry body, said disrupted shipping routes, rising fuel and freight costs and airspace restrictions are creating bottlenecks for exports to the Gulf and the wider region.
“More than 80% of our animal product exports, particularly buffalo meat, are directed towards the Gulf and the wider Middle East and North Africa (MENA) region, with markets like the UAE and Saudi Arabia playing a key role. India also exports eggs to the UAE and Oman,” said Divya Kumar Gulati, chairman of CLFMA of India.
“With livestock exports to the region estimated at $2.3-$2.5 billion in FY25, the sector remains closely linked to stability in West Asia.”
Gulati said the livestock sector is highly sensitive to grain and fertiliser prices. Iran is a major global exporter of urea. “Even market nervousness could push prices up by $50-$60 per tonne, increasing input costs for feed crop cultivation,” he said.
Ships taking longer, alternative routes could also drive up costs. “If shipments are rerouted... transit times could increase by 15-20 days, raising freight, insurance and working capital costs,” Gulati said.
For live animal shipments, longer voyages also mean higher feed requirements and greater stress-related risks.
Despite record production and strong demand, the livestock sector is facing what Gulati described as a paradoxical situation.
As of mid-March 2026, effective export volumes reaching West Asia have contracted sharply because of escalating conflict in the Red Sea and the Strait of Hormuz, he said. “Since the disruption of key shipping lanes in early 2026, industry reports suggest a 15-20% drop in immediate shipment fulfilments to West Asia,” Gulati said.
“The impact is particularly severe for products like fresh or chilled beef and sheep or goat meat, where more than 97% of exports go to the Gulf. Exporters have reported cancellations affecting nearly 25% of monthly orders because they cannot guarantee transit times.”
Key markets
India’s major livestock export destinations include:
- Buffalo meat: Vietnam, Egypt, Malaysia, Iraq, UAE
- Sheep/goat meat: UAE, Kuwait, Qatar, Maldives — where demand for fresh or chilled meat is high and the sector is largely air-freight dependent
- Dairy products: UAE, Saudi Arabia, US, Bangladesh, mainly butter, ghee, milk powders
- Poultry products: Oman, Saudi Arabia, UAE, Maldives, mainly eggs, processed poultry.
Exports to West Asia and Egypt rely heavily on westbound shipping routes, while eastbound routes serve Southeast Asia. Exporters said the westbound route — the most critical for the livestock sector — is currently the most disrupted.
“As of March 2026, the Indian livestock sector is facing its most significant logistical crisis since the pandemic, primarily due to military escalation in the Red Sea and the Strait of Hormuz,” Gulati said.
“The disruption is affecting both maritime shipping and air cargo, particularly shipments of perishable meat,” Gulati said.
Container recalls
This week, Indian exporters recalled more than 300 containers of buffalo meat that had already reached ports. As many Indian ports lack adequate long-term cold storage, exporters are bringing the meat back to inland processing units rather than risk spoilage amid indefinite shipping delays.
Ships are avoiding the Red Sea and bypassing the Suez Canal, travelling instead around the Cape of Good Hope — adding 15-20 days to transit times.
Shipping lines have also imposed “contingency surcharges” of up to $4,000 per 40-foot container on shipments to West Asia, exporters said.
Major Gulf carriers have temporarily suspended or sharply reduced freighter operations because of airspace restrictions in the region.
Leather impact
The slowdown in livestock exports is also affecting the leather sector. “Raw hide supply has slowed down significantly. Suppliers are taking double the time, and now they say they are unsure when the next consignment will be sent,” said Zia Nafis, chairman (eastern region) of the Council for Leather Exports.
Rahimullah, a Kanpur-based supplier, said he typically supplies 80 tonnes of raw hide to leather exporters each month. “This month, the supply is almost nil. We get the hide from livestock exporters. Domestic production is very low,” he said.