The intensifying war between America, Israel and Iran in the Middle East is now cutting the arteries of maritime trade. Bandar Abbas, Iran’s most important and busiest port, is now almost completely closed. The Strait of Hormuz is under threat, insurance cover on ships is being canceled and freight rates have more than doubled. Its biggest blow has been to India’s basmati rice exports, where Iran is the second largest market and supplies were supplied from Bandar Abbas port to landlocked countries like Afghanistan, Tajikistan, Turkmenistan.
Thousands of containers stranded on Bandar Abbas
Talking to ABP News, major exporters said that thousands of containers are stranded at Bandar Abbas. Basmati exporter Shobhit said, ‘Iran is the world’s largest basmati importer. From Bandar Abbas our rice not only reached Iran but also transited to many countries of Central Asia. This year we were sending goods to Afghanistan directly from India instead of Pakistan. Everything was going well, but the war turned everything upside down. Now 4 to 5 thousand containers are stuck there. Some payment has come, but most of the goods and money are stuck.
He said, ‘A total of 10-11 lakh quintals at Bandar Abbas and 7-8 lakh quintals at Indian ports – meaning 18-20 lakh quintals of stock are at risk. Earlier the charge for a container was 500 dollars, now with ‘War Surcharge’ it has reached 2500 dollars. There is only 2-3 percent margin in rice. No one can afford such an expensive thing. New deals have stopped, old goods are stuck.
Another exporter Mohammad Minaj explained his problem, ‘Our 30-40 containers had left for Bandar Abbas. Some had to go to Afghanistan and Tajikistan. But now the ship has been stopped in transit at some other port of UAE. Shipping lines are saying – take care of yourself. Our 1000-2000 metric tonnes of goods are stuck, worth crores. The biggest problem is the internet shutdown in Iran. Unable to reach buyer. The crew is stranded on the ship, but we have no contact with them.
4 lakh metric tons of rice stuck
According to latest reports, a total of about 4 lakh metric tonnes of Basmati rice is stuck at ports or in transit, with Bandar Abbas being the largest hub. Rice exporter Shobhit Jain further said that freight rates have doubled, insurance companies are canceling cover and if any ship is attacked, the entire loss will be on the exporters due to the ‘null and avoid’ clause.
Exporters gave this warning
Exporters are warning that if exports from Bandar Abbas do not happen, the entire industry may collapse. Shobhit said, “If the supply in Saudi Arabia, Iran, Iraq stops, the stock in India will increase and prices will fall. States like Uttar Pradesh, Haryana, Punjab will be most affected. Farmers will not even get the price of water.”
This appeal was made to the government
There is an appeal to the government to waive demurrage and additional charges on stranded goods in Bandar Abbas and provide a relief package. If the war drags on, dollar earnings will stop, oil will become expensive and inflation will increase. Exporters are hoping that this big market can be saved through diplomatic efforts soon. Otherwise this important route of Basmati may be closed for a long time. The direct effect of which will be seen in the form of inflation in India.
