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 prime officers of the Commerce and different associated ministries to mitigate the impression of disruptions triggered by the Iran war.
In a letter to the Agricultural and Processed Meals Merchandise Export Improvement Authority (APEDA) Chairman Abhishek Dev, the Indian Rice Exporters Federation (IREF) Director-Common 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.
Stating that home basmati rice costs are down 7–10 per cent for the reason that begin of the disaster, including stress on exporters’ working capital and contracted realisations, Kaul mentioned that the cargo house availability is a serious subject and gas/danger fees are extremely unsure. Basmati exporters concern that gas/danger fees might 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 gas worth / marine gas oil (MFO) charges have elevated from $520/tonne to $700, a rise of 35 per cent in lower than every week, IREF mentioned in an announcement.
“Our exporters can’t take in abrupt freight, gas and insurance coverage shocks whereas shipments are delayed or rolled,” mentioned Dev Garg, vice-president of IREF. Time-bound relief 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 because of vessel cancellations or steep freight will increase past exporters’ management.
Drive majeure-type
Kaul has requested needed actions after consulting Customs authorities and the Reserve Financial institution of India to ease operational, documentation and payment-related points, together with amendments in shipping paperwork, vacation spot modifications, and settlement procedures. He has urged an official advisory be issued by APEDA, recognising the disruption as a drive majeure–kind occasion, in order that it could assist forestall contractual penalties.
“Contemplating delays in cargo motion and purchaser funds, we request needed advisories to banks be issued to supply non permanent working capital help/ad-hoc services and appropriate time-bound relaxations to ease shortages arising from the present disruption, just like help prolonged throughout the COVID interval,” Kaul mentioned within the illustration.
Revealed on March 5, 2026
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