Basmati exporters face uncertainty as Iran unrest disrupts trade, payments
Iran’s political unrest has unsettled Indian basmati rice exporters in Punjab and Haryana. Some report stalled shipments and payments, while others remain stable via secure channels. Dollar shortages, banking disruptions and route delays have cut demand and prices significantly recently.
Amritsar: The ongoing political unrest and economic uncertainty in Iran has created unease among the Indian rice exporters, particularly in Punjab and Haryana, though opinions within the trade remain divided on the extent of its impact. While some exporters maintained that shipments and payments had been stalled, others say that those with established safe payment mechanisms were not much affected.Iran is one of the key markets for Indian basmati rice. Exporters said the present situation disrupted normal trade flows. However, many in the industry argued that such challenges were not new and that exporters learned to operate amid uncertainty.Tejinder Singh, chief executive officer of Amar Singh Chawal Wala – the owners of the Lal Qilla basmati brand, said the current political crisis did not significantly impact the exporters who secured the payment arrangements in place.”The trade with Iran faced instability in the past as well, and exporters are cautious. Payments are structured through safer channels,” said Tejinder Singh.He informed that rice exports to Iran had slowed down in recent months due to the Iranian govt’s acute shortage of US dollars, which weakened the import demand even before the latest unrest.
Others, however, expressed concern over the ground situation in Iran. Sanjiv Chadha of Sifti Rice Mills said banking operations were severely affected. “The banking system is off, internet services are disrupted and unloading at ports has virtually come to a halt. Under these conditions, exporters have no option but to wait and watch,” he said.Chadha estimated that rice exports worth Rs 1,200-1,400 crore from the exporters in Punjab and Haryana were currently outstanding with Iran, adding that market uncertainty led to a drop of Rs 300-400 per quintal in the rice prices.Exporters also highlighted complications in the shipment routes. Some of the consignments are routed through a “bill to Dubai, ship to Bandar Abbas” model, said a few of them while the others preferred direct shipments to Iranian ports to ensure hassle-free payments. The current unrest, however, has affected both routes, leading to delays and uncertainty.Industry sources said payments were being routed through alternative channels, including barter arrangements, but acknowledged that risks increased. They said exporters were cautious about fresh contracts, especially where inventories were specifically earmarked for the Iranian market.Notably, Indian Rice Exporters Federation has not issued any advisory on halting exports to Iran, but advised exporters to reassess contract risks, strengthen payment safeguards, and avoid overexposure.
To Read more about Rice News continue reading Agriinsite.com
Source : The Times Of India
