Rice Exporters Urge Government Intervention Amid Iran Crisis Shipping Disruptions

Amid escalating shipping disruptions caused by the Iran crisis and regional instability, rice exporters are urging for swift governmental intervention to ease the strain. The Indian Rice Exporters Federation (IREF) has highlighted severe logistical challenges in a plea to the relevant authorities.

The federation reports critical container shortages, vessel call suspensions to the Middle East, and surging logistics costs. Freight rates have soared by 15-20%, while war-risk surcharges and Gulf-bound shipment insurance premiums have significantly increased. Rising fuel costs are exacerbating pressures on exporters, who have seen basmati rice prices fall by 7-10% recently.

IREF vice-president Dev Garg has proposed time-sensitive relief measures and advisories to safeguard exporters' contracts and cash flows. Among the demanded measures are waivers on port charges for cargo affected by vessel cancellations and facilitation for cargo redirection. Additional support, including banking relief, is also requested to address the disruptions being labeled as akin to a force majeure event.