The situation in the Middle East has spillover effects, raising the risk of food inflation in India.

This year, Indian agriculture is facing not only the challenge of high temperatures and little rain, but also the shortage of fertilizers and rising fuel prices due to the global supply chain disruptions caused by the situation in the Middle East. As a result, the production costs of Indian agriculture are increasing, which may lead to overall food inflation. Due to the disruptions in the international supply chain, there has been a severe shortage of basic fertilizers such as urea that are urgently needed by Indian farmers. To address the crisis, some grassroots government agricultural agencies in certain regions have implemented quota restrictions.