The war between Iran and Israel has created a stir in global politics but has also created a wave of concern in the business corridors of the city. Due to the war, leather and handicraft exports to European countries are likely to face serious logistics and route problems.
The shoe industry of Agra is famous all over the world for its quality. Now there is uncertainty of war. The war has increased the risks to ships transiting the Strait of Hormuz and the Red Sea. In such a situation, the exporters of Agra will now have to send the goods by traveling under the Cape of Good Hope in Africa. Now it will take 30 to 50 days more for the goods to reach compared to the normal route. Due to the long distance, the cost of freight transportation is likely to double.
Fear of 40 percent decline in business
Footwear worth Rs 4,000 crore is exported annually from Agra to the world. Out of this, there is a turnover of Rs 250 to 500 crore in Israel and Middle East countries alone. Agra exports high-end leather shoes and safety shoes on a large scale, which are in huge demand among security agencies and industrial sectors in Europe. Apart from this, there is good consumption of Agra mosaics, brass utensils and zari-zardozi decorative items in Iran and Israel.