Basmati rice prices have fallen 5-10 per cent in the domestic market as its exports have reduced due to militant attacks against merchant ships in the Red Sea, according to a report quoting exporters.
The attacks by Yaman’s Houthis have prompted shipping lines to avoid the Suez Canal route, impacting sunflower oil imports also from Russia and Ukraine. According to the report quoting trade insiders, sunflower oil prices in India is likely to go up by 3-4 per cent due to this.
In the international market, sunflower oil prices have jumped $30 per tonne in the past one week to $940 per tonne.
The freight charge to Yemen was $850 per container earlier, which has now increased to $2,400 following the attacks. Similarly, freight rates to Jeddah have jumped from $300 per container to $1,500 now. The rate to Durban has risen to $700 per container, against $1,200 earlier.
“Due to this freight hike, buyers are not taking cargo this time. As a result, prices of basmati rice have fallen in the domestic market now,” said Vijay Setia, former president of All India Rice Exporters Association, according to the report.
India exports 4-4.5 million tonnes of basmati rice per year and the Gulf countries account for about 80 per cent of all basmati exports.