Exports hit due to West Asia crisis

The All India Rice Exporters Association reported that 1.5 to 2 lakh tonnes of basmati rice is currently stuck at various Indian ports, with another 2 lakh tonnes in transit. A senior office bearer of the All India Rice Exporters Association, highlighted the Gulf’s critical importance for Indian basmati

The escalating conflict in the Gulf region is now visibly impacting Indian exports, with hundreds of containers stranded at key ports including JNPT, Mundra, and Kandla. Exporters, particularly those dealing in perishable goods such as grapes, onions, fruits, and vegetables, are forced to park and “plug in” their reefer containers to prevent spoilage, incurring heavy additional expenses. Industry estimates indicate that the number of stuck containers at JNPT has risen sharply since Saturday as pre-booked shipments have reached the ports. 

According to port and exporter sources, parking and plugging a single container costs around Rs 8,000 per day, while unloading adds another Rs 5,000–6,000 per container. Industry bodies have escalated the matter to the government, seeking immediate relief from these extra charges. The Horticulture Produce Exporters Association and the All India Rice Exporters Association have written to the Commerce and Finance Ministries urging authorities to direct ports and shipping lines not to impose any additional costs on exporters already battered by the crisis. 

The All India Rice Exporters Association reported that 1.5 to 2 lakh tonnes of basmati rice are currently stuck at various Indian ports, with another 2 lakh tonnes in transit. A senior office bearer of the All India Rice Exporters Association, highlighted the Gulf’s critical importance for Indian basmati. He recalled that last year 6 million tonnes of basmati rice were exported from India, of which more than 4 million tonnes (40 lakh tonnes) went to Gulf countries. 

He estimated that this would increase to 6.5 million tonnes this year and said that the association is fully geared for it.He added that as of 31 January, exports to the Gulf had already reached 37 lakh tonnes this year compared to 31 lakh tonnes last year. However, the outbreak of hostilities over the weekend — coinciding with a holiday — has brought operations to a standstill. “We have roughly 2 lakh tonnes at Mundra port and another 2 lakh tonnes in transit,” he noted. He also informed that warehouses are also full because this is the peak Ramadan season, with massive shipments scheduled for January to March.

Shipping lines halt operations

Shipping industry sources however painted a grim picture of the logistics crisis. They informed that shipping lines have stopped accepting new containers and are asking exporters to take back those already at ports. A representative explained that weekly about 12 vessels sail to the Gulf and Upper Gulf carrying roughly 2,000 reefer containers. He informed that the weekly trade loss is close to Rs 1,000 crore and expressed anguish that empty vessels are returning without cargo. 

He also mentioned that for perishable shipments that must be parked and plugged in to maintain temperature, the daily cost is steep. He explained that plugging and parking charges are Rs 6,000–8,000 per day per container, plus Rs 3,000–4,000 in detention and transport. He lamented that many exporters are now being asked to call containers back, incurring Rs 40,000–60,000 in round-trip transport costs. He confirmed that hundreds of containers have already been recalled in the past three-four days.

Onions, grapes and other perishables

An office bearer of the Horticulture Produce Exporters Association, said Agriculture Products Export Development Agency (APEDA) has assured full support but is awaiting consolidated inputs from all associations. He stated that APEDA is ready to help, but since yesterday was a holiday, proper data has not yet reached Delhi. 

Various trade associations emphasized that any freight surcharge or war-risk premium being unilaterally imposed by shipping lines — in some cases hiking rates from $700–800 to $2,000 per container — is unacceptable. One trade representative cautioned that exporters buy paddy in cash, mill it, and only get paid after export. Additional interest and storage costs will ultimately hurt farmers.

As the situation remains fluid, the industry is in a wait-and-watch mode. However, if the conflict persists beyond the next two-three days, many more exporters will be forced to recall containers carrying perishable cargo, further escalating losses. The big question now is how quickly the Indian government can step in to provide relief and prevent a temporary geopolitical disruption from turning into a deeper trade setback for the country — especially at a time when export momentum to the Gulf was at its annual peak.