Rice Exporters Seek Urgent Relief as Iran Crisis Disrupts Exports, Shipping

Rice exporters have sought urgent government support to mitigate the impact of shipping disruptions triggered 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 an acute 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 Gulf-bound shipments have increased significantly. Bunker fuel costs have also climbed, with marine fuel oil prices rising to around USD 580 per tonne from about USD 520, it said.

The disruptions have also weighed on domestic prices, with basmati rice prices falling about 7-10 per cent in the past 72 hours, intensifying working-capital pressures for exporters.

"Our exporters cannot absorb abrupt freight, fuel and insurance shocks while shipments are delayed or rolled," IREF vice-president Dev Garg said. 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 waiver of port-related charges, including storage and demurrage, in cases where cargo is rolled due to vessel cancellations or steep freight increases beyond 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.

Further, exporters have sought an official advisory from the government or APEDA recognising 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.