After a cargo vessel carrying basmati was on Wednesday hit by an Iranian drone in the Arabian sea near Dubai, the Punjab Rice Millers Exporters Association has sought the central government’s intervention so as to take steps to avoid such incidents amid the conflict between US-Israel and Iran.
As per the reports trickling in, 400 basmati containers were damaged which were booked by a Saudi buyer, who alone imports 1.5 lakh tonnes of premium grain annually from India. “The exact damage could not be ascertained, but the exporters are concerned,” said Ashok Sethi, director of the association.
India exports basmati worth ₹50,000 crore to North America, Europe and Gulf nations, out of which Punjab contributes 40% of exports. The exporter whose stock has been hit in the Arabian sea is from Punjab but he is not coming forward reportedly.
In a communication sent to the Union commerce and industries minister, Sethi wrote that the basmati rice exports had been hit, due to which concessions, enhanced interest subvention and financial support from the Centre is needed. “Due to the ongoing hostilities, export consignments are stranded at ports or remain stuck in transit, resulting in heavy financial exposure, liquidity stress and uncertainty for exporters,” he mentioned while calling for re-arranging barter agreement, importing crude oil from Iran and exporting rice shipments against Indian rupee payment.
He also demanded waiver of bank interest on working capital and export credit facilities for the duration of the crisis period. He added that the loss to the drone-hit vessel is still not known as the shipping company is taking time for assessment.
{{/usCountry}}He also demanded waiver of bank interest on working capital and export credit facilities for the duration of the crisis period. He added that the loss to the drone-hit vessel is still not known as the shipping company is taking time for assessment.
{{/usCountry}}According to Ranjit Singh Jossan, 1 lakh tonnes worth nearly ₹1,000 crore is stuck at the ports. He added that ports such as Dubai, Qatar, Kuwait and Bahrian and Iran have been completely shut and posts at Yemen, Jordan and Oman open intermittently.
RS member for ACU-based barter mechanism
Chandigarh: Rajya Sabha member Vikramjit Singh Sahney urged the Centre to introduce a barter-based payment mechanism via Asian Clearing Union (ACU) to safeguard basmati rice exports. In a letter to Union commerce and industry minister Piyush Goyal, he stated that nearly 60 lakh tonnes of rice consignments were stranded at ports and in the high seas, leading to major disruptions in exports. “The situation has further worsened following reports of a drone strike on a vessel near Dubai recently. Exporters are grappling with blocked consignments, delayed payments, escalating freight and insurance costs, and rising uncertainty impacting future trade,” he added, seeking revival of the ACU-based barter mechanism.