New Delhi, March 5 Rice exporters on Thursday sought urgent relief measures from the government, such as waivers on port-related charges and payment adjustments, to deal with the crisis following the joint attack by the US and Israel on Iran.
They have requested waivers on port-related charges (storage/demurrage and other levies) when cargo is delayed due to vessel cancellations, and facilitation for cargo in transit to be returned, redirected, or diverted, with support from customs and the RBI for documentation and payment adjustments.
In addition, they have urged the government to issue an official advisory recognizing the disruption as a force majeure event to prevent unfair contractual penalties, and temporary banking support through ad-hoc working capital limits and credit extensions, similar to the relief provided during the COVID era.
The Indian Rice Exporters Federation said these measures are important as exporters are facing severe shipping and logistics disruptions following the Iran crisis and heightened instability across key maritime routes.
They said that exporters are reporting a severe shortage of containers, suspension/cancellation of vessel calls to the Middle East, and a sharp increase in costs.
International freight has increased by an estimated 15-20 per cent, while war-risk surcharges and insurance premiums for Gulf transits have also risen steeply.
"Bunker fuel prices have also increased (members report marine fuel oil moving from about USD 520 to about USD 700), further impacting contracted realizations. In the domestic market, basmati prices have softened by about 7-10 per cent in the last 72 hours, intensifying working-capital stress," it said.
"Our exporters cannot absorb sudden shocks in freight, fuel, and insurance while shipments are delayed or rolled," it added.
There is a shortage of containers for the Middle East, and there are spill-over shortages for other destinations, as disrupted trade flows have affected the circulation/repositioning of empty containers.
