The ongoing US-Iran conflict has severely disrupted rice exports from Karnal, widely recognized as the 'Rice Bowl of India,' causing widespread uncertainty among exporters. The region, which has long relied on Iran as one of the largest markets for premium basmati rice, is now facing significant challenges due to disrupted shipping routes and mounting logistical hurdles.
Exporters Face Mounting Losses
According to industry representatives, a substantial number of consignments destined for Iran and other Middle Eastern countries are stranded at various ports. Fresh orders have come to a halt, while stocks continue to accumulate at port facilities. Shipments already in transit are experiencing delays, resulting in escalating costs. Estimates suggest that between 60,000 and 70,000 tonnes of rice exports are currently stuck at ports, with nearly 50 percent belonging to exporters from the Karnal district.
Satish Goel, president of the All India Rice Exporters Association (AIREA), stated, 'Packaging and dispatch operations for new orders have been severely affected as exporters are unable to dispatch consignments. Rice shipments are stranded at ports in Dubai, Oman, and other transit hubs, while the unavailability of suitable shipping routes has made exports difficult.' He further mentioned that the industry has approached senior government officials, including the Commerce Secretary, Additional Secretary, and Chairman of the Agricultural and Processed Food Products Export Development Authority (APEDA), seeking intervention.
Fear of Losing Market Share to Pakistan
Amid the ongoing disruption, exporters are concerned about losing their competitive edge to Pakistan. Vijay Setia, former president of AIREA, noted, 'Pakistan has the benefit of overland transportation routes, enabling it to continue supplying rice more easily.' He also highlighted delays in payments, which are creating additional financial challenges for the industry.
Setia further raised concerns about registration charges, urging the government to suspend them to alleviate the financial burden. 'The financial burden on the industry is Rs 45 crore due to the registration of rice. It should be suspended to support us,' he emphasized.
Industry Appeals for Government Intervention
Sushil Jain, president of the Haryana Rice Exporters Association, appealed to the government, saying, 'We request the government to intervene so that our consignments can reach buyers.' The industry remains hopeful that diplomatic efforts and alternative shipping solutions will help mitigate the crisis and restore trade flows to the region.
