West Asia crisis | Basmati rice exporters ask Centre to act on arbitrary shipping charges
Basmati Rice Farmers & Exporters Development Forum has urged government intervention as West Asia tensions drive arbitrary shipping charges up to 70% of cargo value. Exporters face diversions, delays, and rising costs, making basmati trade unviable, with smaller players worst hit amid weak regulatory clarity.
New Delhi: Basmati rice exporters have urged the Centre to take urgent action against arbitrary and opaque shipping charges amid the West Asia crisis, saying these costs have made exports commercially unviable for many traders.
The Basmati Rice Farmers & Exporters Development Forum (BRFEDF) highlighted that war-risk surcharges have ranged from USD 800 to USD 6,000 per container. These are often imposed without prior notice or revised retrospectively after cargo has moved. In some cases, cumulative charges have reached 60 to 70 per cent of the cargo value.
“Exporters are effectively being asked to absorb open-ended financial liability for circumstances entirely beyond their control,” said Forum Chairperson Priyanka Mittal in a statement.
The ongoing West Asia crisis has led shipping lines to unilaterally divert cargo to alternative ports such as Jebel Ali, Sohar, and Salalah. Containers are frequently held at trans-shipment hubs with no clarity on onward movement, and in some instances, returned to origin ports.
Exporters bear the full financial burden despite having no control over these decisions, the forum said.
BRFEDF demanded that the Shipping Ministry link charges strictly to services actually rendered, require shipping lines to release containers without tying them to disputed fees, and frame clear regulatory guidelines for cargo handling during geopolitical disruptions.
The forum noted that the Directorate General of Shipping has formally logged the grievances and assigned tracking numbers for an inter-ministerial review. However, it said ground conditions remain “extremely challenging.”
Smaller exporters have been hit the hardest due to the imbalance in bargaining power with large global carriers. Some traders have even considered abandoning their cargo amid mounting costs.
“If left unaddressed, such practices risk setting a precedent that could undermine confidence in India’s maritime trade framework,” Mittal said.
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Source : Deccan Herald
