The Iran war is leading to food inflation in the Gulf region, primarily the United Arab Emirates, with sea routes and air cargo being affected since February 27.
Multiple sources told businessline that prices of vegetables and fruits have doubled, while stocks of foodgrains, mainly rice, are thinning.
“Last week, vegetable trays in some shops in Sharjah were empty. This week, prices have come down a tad,” said a Sharjah-based person from Kerala.
“Prices are sky high. Tomatoes and onions were 1 AED (United Arab Emirates dirham) and are ruling at 6 and 5 AED now. The availability of groceries at kirana shops is ok as of now,” said a Dubai-based person from Tamil Nadu.
Managing supplies
A trading source said the UAE has only a fortnight’s stock of premium rice varieties, while ordinary varieties may last for 45 days. The Gulf country could soon run out of potatoes.
Dubai-based fruits importer CEV Muhammed Siraj told businessline over the phone that the Gulf markets have begun to experience shortages of several products from India in the wake of the crisis.
“Traders are currently managing supplies through shipments from Sri Lanka, Vietnam and Thailand. However, rising freight costs have forced many buyers to defer purchases,” he said.
This being the Ramadan season, demand for pineapple and other fruits are high, but consumers are having to cope up with limited availability, he said.
Freight charges triple
Munshid Ali, general secretary of the Kerala Exporters Forum, said his firm had received shipment orders for 2,000 kg of pineapple and 27 tonnes of coconut from Tamil Nadu to meet the festival demand.
However, soaring freight charges have made shipments unviable. The air freight cost for pineapple from Kerala airports soared from ₹70–80 a kg to around ₹210, prompting buyers to cancel orders. “For coconuts, container freight has climbed to around $3,800,” he said.
Asked how traders are navigating shipping routes amid the conflict, Ali said some cargo is being routed through Khor Fakkan Port on Sharjah’s east coast, which operates outside the Strait of Hormuz.
The Chennai native said rulers in the Emirates have assured food security and are looking to import via air. “Saudi Arabia and Oman have other routes to cater to the Gulf Cooperative Council through road because the Red Sea and Oman ports do not need to use the Strait of Hormuz,” he said.
Disrupted logistics
The UAE is taking Oman’s help due to its proximity and things are being managed through road.
Ali said with shipments stranded, over 150 tonnes of perishable exports from Kerala have come to a standstill. Both air and sea cargo routes have been severely affected, disrupting exports.
Although some urgent supplies are being flown in by companies such as the Lulu Group, the broader logistics chain remains severely disrupted, impacting consumers in West Asia, he said.
Published on March 14, 2026
