Impact on exports of basmati resulting from the crisis in the Red Sea

Mumbai: India's import-export trade has been affected as a result of disruption of shipping in the Red Sea. Basmati exports from India in particular have been hit while sunflower oil imports have come to a standstill, sources said.

Exports of basmati have been affected and their prices have been reduced by eight to ten percent locally, while sunflower imports are expected to increase by five percent globally.

Basmati exports have slowed down and shipping costs to countries like Jeddah, Durban, Beirut have gone up to $350 per container, sources in the All India Rice Exporters Association said.

Before the crisis in the Red Sea, freight rates to Yemen hovered around $825 per container. Apart from this, the rate at Jeddah has also increased by five times, an exporter said.

Terrorist attacks in the Red Sea have affected the movement of goods.

Higher container rates have resulted in lower purchases of Indian basmati in overseas markets, putting domestic basmati prices under pressure. India's export of basmati stands at around 40 lakh tonnes per annum. Gulf countries are the largest buyers of Basmati.

On the other hand, the import price of sunflower has increased by 30 dollars to 935 dollars per ton. Due to this increase, domestic prices are likely to increase.

If the import route of sunflower is changed, it may take 36 to 38 days to reach Indian ports instead of 28, said an official of the Solvent Extractors' Association. Ukraine is a major supplier of sunflowers.