AHMEDABAD: The ongoing Iran–Israel war has delivered another economic jolt to Gujarat. After crippling Morbi’s ceramic factories and shaking Surat’s export sectors, the conflict has now struck North Gujarat’s potato belt. Banaskantha’s potato market has collapsed as exports to Gulf countries have slowed sharply, pushing prices to rock bottom and exposing farmers and traders to heavy losses.
Banaskantha produces potatoes in massive quantities every year, and a significant portion of this output is exported to Gulf countries in the form of fresh produce and processed products.
However, the war has disrupted trade routes and container movement, forcing exporters to halt shipments. As exports slow down dramatically, demand has plunged in local markets, dragging potato prices to alarming lows.
The crisis has come at the worst possible time for farmers. This year, potato production in Banaskantha has been exceptionally high, raising hopes of strong export demand and better prices. Instead, those hopes have been shattered. With exports stalled and supply flooding the domestic market, farmers are now forced to sell their produce at distress prices.
The situation is further compounded by a chain of setbacks farmers have already endured this season. Unseasonal rains had earlier damaged crops and affected storage conditions. Just as farmers were hoping to recover losses through export markets, the Iran–Israel war disrupted global trade channels, dealing yet another blow to their fragile finances. As a result, potato prices have crashed to unprecedented levels.
Traders say that the market price of potatoes has fallen sharply, dropping below Rs 100 per 20-kg bag in several trading centres. Farmers who were earlier expecting stable returns are now selling potatoes at barely Rs 8 per kg, a steep fall from around Rs 12 per kg earlier in the season. For many growers, the current prices barely cover production and transportation costs. This sudden collapse is not just hurting farmers. Traders and cold-storage operators across Banaskantha are also staring at heavy financial losses. The district has a vast network of cold storages where traders typically purchase potatoes from farmers, store them for months and later export them to international markets for profit. With overseas shipments stalled and global logistics disrupted, that entire business cycle is now under severe stress.
Disa Cold Storage Association President Fulchand Kachhwa warned that the crisis could deepen if the war continues. He said the export chain has already been severely affected by logistical disruptions. “If the war lasts long and exports do not resume soon, traders will have to suffer heavy losses this season,” Kachhwa said. He explained that the conflict has disrupted the movement of shipping containers and sharply increased logistics costs. “Potatoes exported from India have been badly affected due to the Iran–Israel war. Because of the conflict, containers are not available on time and the rent for containers has increased significantly,” he said.
Kachhwa further highlighted the scale of the trade that is now under threat. “Every year around 25 lakh Sack of processed potatoes are exported in nearly 8,000 containers. In total, 35 to 40 lakh Sack of potatoes are exported annually. But this year only about 50 percent of that quantity has been exported so far,” he said. He also pointed out that production has increased significantly this year, which has worsened the price crash. “Last year the country produced about 7.50 crore Sack of potatoes. This year production has increased by around 10 percent to nearly 8 crore Sack of potatoes. Because of this, potato prices were already under pressure. When exports stopped due to the war, the prices fell even further,” he added.
According to traders, farmers who were earlier receiving around Rs 12 per kg are now getting barely Rs 8 per kg. The sharp decline has wiped out profit margins for both growers and traders, raising fears of widespread financial distress in the district.
Banaskantha’s potato economy is deeply tied to international markets, particularly the Gulf region. Processed potato products such as chips-grade and frozen varieties are regularly exported to several West Asian countries. The ongoing conflict has disrupted not only shipping schedules but also demand patterns in those markets, leaving exporters uncertain about future orders. Industry observers say the situation reflects how deeply global conflicts can impact regional economies.
For now, farmers and traders across Banaskantha are closely watching developments in the Gulf region. Their hopes rest on one key factor the resumption of normal trade routes and export orders. If the geopolitical tensions ease and shipments restart, demand in the market could recover and prices may stabilise. But if the conflict drags on, the impact could deepen, leaving thousands of farmers and traders across North Gujarat staring at mounting losses. In a state whose economy thrives on global trade from ceramics and textiles to diamonds and agricultural exports the war thousands of kilometres away is proving to be a costly reminder of how interconnected markets have become. And in Banaskantha’s fields and cold storages, that reality is now painfully clear.