support@headlinenews360.com
The impact of the ongoing confrontation between Iran and Israel is now visible on the Basmati rice industry of India. About 1 lakh tonnes of basmati rice, which was to be sent to Iran, is stuck on Kandla and Mundra ports of Gujarat. The reason is that neither shipping ships are being found for Iran nor insurance companies are now covering that goods.
Iran India’s second largest customer
Saudi Arabia is the largest buyer of basmati rice from India, but Iran comes second. In the financial year 2024-25, India exported about 1 million tonnes of basmati rice to Iran. Out of this, 18 & ndash; 20 percent ie about 1 lakh tonnes of rice is stuck at the ports. Speaking to PTI, President of All India Rice Exporters Association, Satish Goel said that in the current situation this situation can be huge loss to the traders.
neither ship is getting, nor insurance
Satish Goyal said in a conversation with PTI that no shipping vessel is available for Iran at present and the insurance cover is not available. Actually, international insurance policies do not give coverage in circumstances like war and that is why traders are not being allowed to send rice consignment further. This has not only trapped rice, but has also increased the uncertainty of payment.
prices also started falling in the domestic market
The effect of these situations is also being seen on the domestic market. Basmati rice prices have fallen by 4 to 5 rupees per kg. Because the rice is not going abroad, the local supply has increased and due to this the prices are coming down.
Merchants fear that if there is no early resolution, then a loss may have to be incurred, especially those traders who had already finalized the deal with Iran.
Preparation to interact with the central government
In view of the seriousness of the situation, All India Rice Exporters Association is constantly in touch with APEDA and Union Ministry of Commerce. A meeting with Union Minister Piyush Goyal is proposed on June 30 on this issue. In this meeting, not only the current crisis will be discussed, but in the future, there can be talk on measures to prevent such situations.
How big is India’s basmati rice business?
Only this year (2024-25) India has exported about 60 lakh tonnes of basmati rice, of which a large share is from the countries of Middle East and West Asia. Major customers include countries- Saudi Arabia, Iran, Iraq, United Arab Emirates (UAE) and America.
War is anywhere, harm is done to everyone
The ongoing conflict between Iran and Israel has clearly shown that the fire of war reaches business, not just the border. Basmati rice exporters of India are currently facing double hit. On the one hand, the problem of ship and insurance, on the other hand, falling prices in the domestic market and the crisis of payment. If the situation does not improve in the coming weeks, then India’s rice industry may have a long -term impact.
(tagstotranslate) Iran israel war
Source link
