Finance minister Nirmala Sitharaman on Monday said she was concerned over farm exports to Russia and Ukraine and sought feedback on the payment problems of exporters.

She said the conflict would hit the import of essentials such as edible oils and some fertilisers. India is a major importer of phosphatic fertilizers from Russia.

“I am more worried about what is going to happen to our exporters who are doing very well, particularly the farm sector, to Ukraine and Russia,” the finance minister told industrialists in Chennai.

Aditi Nayar, chief economist, Icra, said, “The macro implications of the geopolitical crisis will stem primarily from the surge in crude oil prices. Though the rupee has been relatively range-bound in 2022 so far, pessimistic global sentiments along with a stronger dollar could weaken the Indian currency.”

Exporters on Monday said they will face more difficulties for their shipments to Russia following a decision to exclude select Russian banks from SWIFT as this would hamper direct payments for goods .

Export Credit Guarantee Corporation has also decided to withdraw coverage for shipments to Russia with effect from February 25, which is a huge setback for exporters.

“Indian exporting community is apprehended to face uncertainty or at least a deferral on payments for exports. This may again discourage them from executing further orders from Russia and India’s exports to the country may decline substantially,” EEPC India chairman Mahesh Desai said.

Federation of Indian Export Organisations also expressed apprehension and said payments to exporters will get stuck for the shipments that have already been dispatched and they will hold on to new orders until a fresh payment mechanism is not in place.