India rice exports hit by Middle East conflict as shipments stall and prices fall
Why it matters: The Middle East conflict is upending global food supply chains and threatening India's economic stability.
- Indian Rice Exporters Federation reports that around 400,000 tonnes of rice are currently stuck at ports or at sea due to the Middle East conflict, leading to rising costs and stalled new orders.
- Vinod Kumar Kaul, director general of the federation, has appealed to the government to prevent unjustified increases or new surcharges from shipping lines.
- Traders warn that if stranded consignments are diverted to the domestic market, it could disrupt operations, create a supply glut, and cause prices to crash, with Virender Kumar, a Delhi-based exporter, noting that rates fell immediately after the war began.
- The conflict is also raising concerns over India's fertiliser supplies, as the country heavily relies on imports from Gulf nations and liquefied natural gas from Qatar for domestic production.
- The Indian government has assured sufficient fertiliser stocks for the upcoming sowing season and is exploring alternative sources while prioritizing gas supply to domestic fertiliser plants.
India's anticipated bumper year for rice exports has been derailed by the Middle East conflict, with an estimated 400,000 tonnes of rice stranded and prices falling, according to the Indian Rice Exporters Federation. This disruption, primarily affecting shipments to major buyer Iran, is causing significant losses for exporters and raising concerns about global food security and a potential domestic supply glut.
