Indian basmati exporters seek Covid-type relief after Iran war disrupts shipping

An in depth-up of basmati rice grains stacked on the market inside a store at a wholesale market in Kolkata, India, January 13, 2026. REUTERS/Sahiba Chawdhary
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SAHIBA CHAWDHARY

Rice exporters have urged Indian authorities’s agri export promotion physique APEDA to urgently take up among the points together with freight and insurance coverage charges in addition to logistics with high officers of the Commerce and different associated ministries to mitigate the influence of disruptions triggered by the Iran conflict.

In a letter to the Agricultural and Processed Meals Merchandise Export Improvement Authority (APEDA) Chairman Abhishek Dev, the Indian Rice Exporters Federation (IREF) Director-Basic Vinod Kumar Kaul mentioned exporters are dealing with an acute scarcity of containers, suspension or cancellation of vessel calls to the West Asian area, and sharp enhance within the logistics prices.

Mentioning that home basmati rice costs are down 7–10 per cent because the begin of the disaster, including stress on exporters’ working capital and contracted realisations, Kaul mentioned that the cargo house availability is a serious challenge and gasoline/danger fees are extremely unsure. Basmati exporters concern that gasoline/danger fees could escalate additional within the coming days.

Freight fees up 20%

Worldwide freight charges have risen by an estimated 15-20 per cent, whereas war-risk surcharges and insurance coverage premiums for Gulf-bound shipments have elevated considerably. Bunker gasoline value / marine gasoline oil (MFO) charges have elevated from $520/tonne to $700, a rise of 35 per cent in lower than every week, IREF mentioned in a press release.

“Our exporters can not soak up abrupt freight, gasoline and insurance coverage shocks whereas shipments are delayed or rolled,” mentioned Dev Garg, vice-president of IREF. Time-bound aid and clear advisories are important to guard contracts, money flows and India’s export commitments, he mentioned.

Among the many key measures sought by IREF embrace waiver of port-related fees, together with storage and demurrage, in instances the place cargo is rolled as a result of vessel cancellations or steep freight will increase past exporters’ management.

Pressure majeure-type

Kaul has requested crucial actions after consulting Customs authorities and the Reserve Financial institution of India to ease operational, documentation and payment-related points, together with amendments in transport paperwork, vacation spot modifications, and settlement procedures. He has recommended an official advisory be issued by APEDA, recognising the disruption as a drive majeure–kind occasion, in order that it will assist stop contractual penalties.

“Contemplating delays in cargo motion and purchaser funds, we request crucial advisories to banks be issued to offer short-term working capital assist/ad-hoc amenities and appropriate time-bound relaxations to ease shortages arising from the present disruption, much like assist prolonged throughout the COVID interval,” Kaul mentioned within the illustration.

Printed on March 5, 2026