Indian exporters of basmati rice and tea are expressing concerns over potential disruptions to their shipments to the Middle East amid recent flare-ups in the region.
Some of the world's largest consumers of basmati rice include Iran, Israel, and other nearby countries. Companies and trade groups in India have issued a warning that exports from the country would be severely affected if the situation in the area becomes violent.
Vijay Setia, a prominent exporter and former president of the All India Rice Exporters Association, underscored the potential challenges exporters may face if tensions continue to rise. He highlighted the critical nature of the current week for exporters, suggesting that changes to shipping routes may become necessary.
Government data reveals that Iran alone accounted for $598 million of the total basmati rice exports, valued at nearly $4.59 billion, during the first 11 months of the previous fiscal year.
In addition to basmati rice, tea exporters are also apprehensive about the potential fallout. They had been anticipating an expansion of business with Iran this year, with plans to ship 40 million kilograms of tea to the Middle Eastern country. However, with the region now at the epicenter of renewed conflict concerns, these plans could be jeopardized.
The uncertainty surrounding the situation in the Middle East is casting a shadow over India's export prospects. The prospect of disruptions to key markets such as Iran poses significant challenges for exporters, who are closely monitoring developments in the region.
While the full extent of the impact remains uncertain, exporters are bracing themselves for the potential challenges ahead. The coming days will be crucial in determining the course of action for Indian exporters of basmati rice and tea as they navigate through the uncertainties posed by the geopolitical situation in the Middle East.
