Amid escalating shipping disruptions linked to the Iran crisis and growing instability in West Asia, rice exporters have urged the government to intervene and ease the mounting logistical challenges.
The Indian Rice Exporters Federation (IREF) has flagged serious concerns over container shortages, suspension of vessel calls to the Middle East, and sharply rising logistics costs. According to the federation, freight rates have surged by 15–20%, while war-risk surcharges and insurance premiums for Gulf-bound shipments have increased significantly.
Exporters say the pressure is intensifying as fuel costs rise and basmati rice prices have dropped by 7–10%, squeezing margins and creating uncertainty around existing export contracts.
Dev Garg, vice-president of IREF, has called for urgent government intervention to help exporters manage the crisis. The federation has proposed several time-sensitive relief measures, including:
Waiver of port charges for cargo affected by vessel cancellations
Facilitation for redirecting shipments to alternative destinations
Banking and financial relief to support exporters’ cash flows
IREF has also requested the government to issue advisories recognising the disruptions as force majeure–like conditions, enabling exporters to protect contractual obligations and mitigate financial risks.
Exporters warn that without timely support, the ongoing shipping disruptions could significantly impact India’s rice export trade with Gulf markets, which are among the largest buyers of Indian basmati rice.