India’s rice exporters are facing disruptions as the conflict in West Asia affects shipments and payments linked to Gulf markets, Ravi Dutta Mishra reported in The Indian Express.
The Gulf region is a key market for Indian basmati rice, and exports usually increase during Ramadan, making the current disruption particularly worrying for traders. Uncertainty around payments from importers and rising demurrage charges are also adding to the pressure on exporters.
According to the report, exporters estimate that between two and four lakh tonnes of rice are stuck across the supply chain. Over 3,000 containers are stranded at Indian ports, while others remain in transit or waiting at destination ports.
Industry representatives say exporters have limited options and have requested support measures such as waivers on port charges and regulatory adjustments that could allow shipments to be recalled.
Some exporters are attempting to reroute shipments to other markets, but the process is difficult and costly. The lack of clarity about when the conflict might ease also makes it challenging to estimate demurrage costs.
The government has begun consultations with several ministries and logistics partners to assess the situation. Commerce minister Piyush Goyal said an inter-ministerial group has been created to monitor supply chain risks and coordinate responses.
Exporters have also warned that rising bunker fuel prices, freight costs and insurance premiums could add to their losses if the conflict continues. With Africa and the Middle East together accounting for a large share of India’s rice exports, prolonged disruption could significantly affect the sector.
The Indian Rice Exporters’ Federation (IREF) said heightened volatility in basmati prices is expected in the coming days, as basmati wholesale prices were up 10-15% over the past month, and Iran is a key market for Indian rice. IREF said it has issued an advisory to its members in view of the deteriorating situation in the Islamic Republic of Iran and parts of the Gulf, The Indian Express reported.
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Naresh Khanna – 10 February 2025
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