Basmati rice exporters have raised concerns over rising freight costs and disruptions in Gulf shipping routes, urging the government to accelerate maritime reforms and introduce stronger regulatory safeguards to stabilise export operations. Industry stakeholders say the ongoing volatility is affecting cargo movement, increasing uncertainty, and putting pressure on profit margins across the sector.

Exporters have specifically called for the faster operationalisation of the Merchant Shipping Act, 2025, arguing that India requires a more predictable and transparent maritime framework as export volumes continue to grow. They are seeking clear rules on freight revisions, advance notice periods for surcharge changes, and a dedicated dispute resolution mechanism to address billing conflicts with global shipping lines.

According to exporters, the lack of structured regulation during geopolitical disruptions has made Indian shipments vulnerable to sudden cost escalations. Industry representatives say basmati rice export quotes are currently being seen in the range of $1,100 to $1,300 per tonne in some markets, with freight fluctuations being a major contributing factor rather than supply shortages.

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Freight costs to key Gulf destinations have reportedly surged sharply, rising from around $550 earlier to as high as $3,000 in certain cases, depending on route disruptions and carrier adjustments. Exporters also pointed to rising inland transport costs linked to crude oil prices, along with higher expenses for packaging materials such as polypropylene bags and cartons, further tightening margins.

Operational bottlenecks have added to the pressure, with reports of cargo delays, diversions, and shipments being held up at ports, inland container depots, and transshipment hubs. These disruptions have led to accumulation of detention and demurrage charges, which exporters say are particularly burdensome for small and mid-sized firms already facing working capital constraints.

Priyanka Mittal, Chairperson of the Basmati Rice Farmers and Exporters Development Forum, said the sector needs greater predictability in shipping charges during geopolitical crises. While acknowledging steps taken by the Directorate General of Shipping—such as grievance redressal systems, nodal officers at ports, and temporary waivers at select locations—exporters stressed that long-term stability will require institutional reforms rather than ad-hoc interventions.

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