Punjab is facing a serious export bottleneck as nearly 60 lakh tonnes of premium basmati rice remain stranded at ports and in transit due to escalating tensions in West Asia, according to Rajya Sabha MP Vikramjit Singh.
Raising the issue on Thursday, Singh said exporters are under mounting stress as consignments remain blocked, payments are delayed, and operational costs continue to rise sharply. Freight rates have surged, insurance premiums have increased amid security risks, and container shortages have further complicated shipments.
The disruption comes at a time when West Asia—one of the largest markets for Indian basmati—accounts for a significant share of exports. Recent security concerns, including reports of a drone strike near Dubai, have added to uncertainty, forcing shipping lines and insurers to reassess risks in the region.
Exporters are now grappling with logistical challenges and financial strain, with many unable to meet delivery timelines or secure viable shipping options.
To mitigate the crisis, Singh has called for the revival of the Asian Clearing Union (ACU)-based barter mechanism with Iran, which would allow trade settlements in local currencies and ease payment bottlenecks. He also urged the government to provide immediate financial relief and subsidies to offset exporter losses.
The ACU, established in 1974 and headquartered in Tehran, functions as a multilateral payment system among central banks in Asia, facilitating trade by reducing dependence on hard currencies.
Industry stakeholders warn that unless swift measures are taken, the prolonged disruption could impact India’s basmati export competitiveness and strain farmer incomes in Punjab.