Green forest fire notification in India

Supply-chain Risk Briefing: India Forest Fires

1. Summary

Forest fires in India that persisted for approximately 2 weeks from March 26 to April 9 have been classified as medium-level risk. While specific affected areas or scale were not specified, considering the fires lasted over 2 weeks, they are estimated to have impacted a considerable area.

2. Supply-chain impact

• Agricultural commodities: India is a major global producer of rice, wheat, cotton, and tea leaves, with potential production decreases in agricultural areas near fire zones
• Pharmaceutical raw materials: India is a key global supplier of generic drugs and APIs (Active Pharmaceutical Ingredients), with concerns over indirect impacts on manufacturing facility operations due to air quality deterioration from fires
• Textile raw materials: Potential disruptions to global textile supply chains if natural fiber production areas including cotton and jute are damaged
• Logistics infrastructure: Risk of aviation and overland transport delays due to fire smoke and air quality deterioration

3. Watch points

• Ministry of Agriculture damage assessment: Track Indian government announcements on crop damage scale and whether production forecasts are revised
• Air Quality Index: Monitor AQI changes in major industrial cities (Delhi, Mumbai, Bangalore, etc.) and impacts on manufacturing capacity utilization rates