60,000 tonnes of Basmati Rice stuck at Indian ports amid West Asia conflict

Kochi: India’s basmati rice exports have suffered a major setback due to the ongoing conflict in West Asia. Around 60,000 tonnes of basmati rice are reportedly stuck at various ports across the country, according to the Indian Rice Exporters Federation (IREF).

The crisis has been triggered by a sharp rise in shipping freight charges and a shortage of vessels amid the conflict in the region. Exporters say these disruptions have severely affected the movement of cargo bound for West Asian markets.

Nearly 90 per cent of India’s rice exports to West Asia consist of basmati rice, with the country exporting basmati worth about ₹25,000 crore annually to the region. However, the current geopolitical tensions have created major obstacles for exporters.

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Typically, standard marine insurance policies do not cover damages caused by war-related incidents. As a result, even if ships are attacked during transit, exporters cannot claim insurance, making shipping companies reluctant to operate in the region.

In addition, container rental costs have increased by approximately 40 per cent, while freight charges have risen by nearly 20 per cent. Exporters say they are unable to bear such high costs, further worsening the situation for India’s basmati rice trade.

Ramadan-related exports also affected

Businesses linked to the Ramadan season have also been hit, as ships are not operating to eastern ports in several Arab countries. As a result, exporters are facing significant difficulties in sending goods to the region.

Compared to the same period last year, exports have declined by approximately 30 per cent. With exports falling sharply, basmati rice prices in the domestic market have dropped by up to 10 per cent.

Meanwhile, the Indian Rice Exporters Federation (IREF) has written to the Agricultural and Processed Food Products Export Development Authority (APEDA) highlighting the current challenges faced by exporters.