Basmati Rice Stranded At Gujarat Ports
With neither vessels nor insurance available for Iran-bound cargo due to the Middle East conflict: All India Rice Exporters Association
CHENNAI: Around 1 lakh tonnes of basmati rice destined for Iran are stranded at Indian ports due to the ongoing Israel-Iran conflict. Meanwhile, several exporters are holding up shipments in transit to the conflict-ridden destinations.
According to All India Rice Exporters Association, the basmati rice shipments are primarily held up at Kandla and Mundra ports in Gujarat, with neither vessels nor insurance available for Iran-bound cargo due to the Middle East conflict. International conflicts are typically not covered under standard shipping insurance policies, finds the association.
According to Ajay Sahai, director general of FIEO, the basmati rice prices have also fallen in the recent past. Exporters, who had fixed the delivery at a higher price, are now facing issues as buyers are not accepting consignments at earlier rates.
“After the Iran-Israel conflict intensified, exporters are increasingly asking the shipping lines to park the cargo in transit at transhipment ports on the way as many buyers are unable to accept the consignments during the crisis.
Around 30 per cent of exports across categories to these destinations are halted mid-way, he added.