New Delhi, March 5 Rice exporters have sought urgent government support to mitigate the impact of shipping disruptions caused by the Iran crisis and instability across key maritime routes, according to a representation submitted by the Indian Rice Exporters Federation (IREF).
The Federation, in its representation to the Agricultural and Processed Food Products Export Development Authority (APEDA), said exporters are facing a severe shortage of containers, suspension or cancellation of vessel calls to the Middle East, and sharply higher logistics costs.
International freight rates have risen by an estimated 15-20 per cent, while war-risk surcharges and insurance premiums for shipments bound for the Gulf have increased significantly. Marine fuel oil prices have also climbed, rising from around USD 520 to approximately USD 580 per tonne, it said.
The disruptions have also affected domestic prices, with basmati rice prices falling by about 7-10 per cent in the past 72 hours, intensifying working-capital pressures for exporters.
"Our exporters cannot absorb sudden shocks in freight, fuel, and insurance while shipments are delayed or canceled," said IREF Vice-President Dev Garg. He called for time-bound relief measures and clear advisories to safeguard export contracts, cash flows, and India's export commitments.
Among the key measures sought are waivers of port-related charges, including storage and demurrage, in cases where cargo is delayed due to vessel cancellations or steep freight increases beyond the exporters' control.
The federation has also requested facilitation for cargo in transit to be returned, redirected, or diverted, with support from customs authorities and the Reserve Bank of India for documentation and payment adjustments.
Furthermore, exporters have sought an official advisory from the government or APEDA recognizing the disruption as a force majeure-type event, which they say would help prevent contractual penalties.
The federation has also urged temporary banking relief, including ad hoc working-capital limits and credit extensions similar to measures provided during the COVID-19 pandemic.
