India’s basmati rice exports are under strain as escalating freight rates—triggered by the ongoing tensions in West Asia—disrupt shipment flows and inflate logistics costs, prompting the Ministry of Ports, Shipping and Waterways to step in.
According to official sources, the ministry is set to hold consultations with major global shipping lines and logistics stakeholders to address the challenges faced by exporters. The move comes amid growing concern that the disruptions could impact India’s nearly $6 billion basmati rice trade, a key component of the country’s agri-exports.
Exporters have reported sharp increases in ocean freight rates and reduced vessel availability, particularly on routes passing through the conflict-affected region. The situation has led to delays, higher insurance premiums, and uncertainty in delivery schedules, affecting both exporters and overseas buyers.
Industry representatives have urged the government to facilitate stable freight conditions and ensure continuity of services. They have also highlighted the need for coordinated intervention to prevent long-term damage to India’s competitiveness in the global basmati market.
The ministry’s planned meeting is expected to explore measures to stabilise freight rates, improve container availability, and maintain reliable shipping connectivity. Officials indicated that efforts would be made to work closely with carriers to mitigate disruptions and safeguard export momentum.
The development underscores the broader vulnerability of global trade routes to geopolitical tensions, with Indian exporters increasingly exposed to external shocks beyond their control.
