Iran–Israel War Disrupts Byadgi Chilli Exports, Traders in Karnataka Face Losses

Haveri: The ongoing conflict between Iran and Israel is beginning to affect agricultural trade in India, particularly the export of the globally renowned Byadgi chilli from Karnataka.

Traders and exporters say the escalation of tensions in the Middle East has disrupted shipments to several Gulf countries, causing uncertainty in the chilli market and concern among farmers.

The Byadgi chilli market, located in Haveri, is one of the largest trading centres for this variety of chilli, which is famous for its deep red colour and moderate pungency.

The chilli is widely used in spice blends, food processing industries and even in cosmetic products due to its natural colouring properties. Every year, large quantities of Byadgi chillies are exported to multiple international markets.

According to traders, exports to Gulf countries have almost come to a halt due to the ongoing conflict in the region. The situation has also led to a sharp increase in freight charges for containers transporting chillies to international destinations.

Earlier, the cost of shipping a container was around 1,800 US dollars, but it has now risen to more than 3,500 US dollars, putting additional financial pressure on exporters.

Byadgi chilli exports are not limited to the Middle East. The product is also shipped to countries such as Malaysia, Indonesia, Bali, Thailand and Singapore. However, the disruption in major shipping routes and rising transportation costs are affecting trade with several markets.

The market in Haveri attracts farmers and traders from different regions, including Ballari and various parts of Andhra Pradesh, who bring their produce to sell. Traders warn that if exports continue to remain stalled, the domestic supply of chillies will increase significantly, which could eventually push market prices down and impact farmers’ income.

Industry sources say nearly 1,000 tonnes of Byadgi chillies and chilli powder are usually exported every month to Middle Eastern countries. However, exports have been stopped for the past 15 days, creating a backlog of shipments. Exporters also claim that payments worth nearly ₹10 crore are still pending from overseas buyers.

Adding to the problem, consignments of chillies and chilli powder are currently stuck at ports due to shipping disruptions linked to the conflict. Traders fear that if the situation continues, both farmers and exporters could face substantial financial losses.

Market participants are now closely monitoring developments in the Middle East, hoping for a quick resolution to the conflict so that trade routes can reopen and exports from the Byadgi chilli market can resume smoothly.

Also Read: PM Modi could help end Iran–Israel conflict with a phone call, says UAE Ambassador