Wildfire in India — Green alert

Supply-chain Risk Briefing: India Forest Fires

1) Summary Moderate-scale forest fires occurred in India from April 9-14, spreading across multiple regions including the Chamarajanagar area of Karnataka state and Assam state. Due to rising temperatures and dry climate conditions, the frequency of forest fires is increasing nationwide, prompting authorities to strengthen fire suppression and prevention measures.

2) Supply-chain impact

• Agricultural commodities: Karnataka is a major production region for India's key spices (cardamom, pepper) and coffee, with forest fire-induced air quality deterioration and soil damage potentially affecting crop yields
• Forestry products: Supply chain disruptions expected for timber and bamboo from fire-affected areas including Assam state, with short-term impacts anticipated on raw material procurement for furniture and pulp manufacturers
• Transportation logistics: Potential logistics delays due to temporary traffic restrictions on road and railway transport routes within fire-affected areas
• Manufacturing indirect impacts: Concerns over production disruptions at factories due to air pollution and worker health issues leading to productivity decline

3) Watch points

• If dry climate conditions persist until the monsoon season (June-September), monitor the scope of fire spread and whether fires extend to areas near major industrial complexes
• Impact of the Indian government's fire suppression effectiveness and future enhanced prevention policy measures on protecting agricultural and forestry production areas