Basmati Exporters Call for Maritime Reforms Amid Freight Cost Surges

Basmati rice exporters in India are calling for urgent government intervention to address rising freight costs and shipping disruptions, particularly on Gulf routes, as per news reports.  

These challenges are impacting export operations and squeezing profit margins. 

Rising Freight Costs and Export Challenges 

Exporters are facing significant challenges due to increased freight charges and disruptions on Gulf shipping routes.  

Exporter anxiety stems from sharply higher shipping and operational costs: basmati quotes $1,100-$1,300/tonne, Gulf freight surging $550 to $3,000, driven by logistics, not rice shortages. 

The cost of shipping to key Gulf destinations has surged from approximately $550 to as high as $3,000 in some cases.  

This increase is largely attributed to logistical issues rather than a shortage of rice. 

In addition to freight costs, exporters are dealing with higher expenses related to inland transport, packaging materials, and working capital requirements.  

Cargo delays and diversions have resulted in detention and demurrage charges, which are particularly burdensome for smaller exporters. 

Call for Regulatory Reforms 

Exporters are urging the government to expedite the implementation of the Merchant Shipping Act, 2025, to establish a predictable and transparent maritime framework.  

They seek clear guidelines on freight and surcharge changes, a dedicated dispute resolution mechanism, and defined rules for charges during disruptions. 

Such reforms are seen as essential for supporting India's goal of becoming a trillion-dollar export economy, especially during geopolitical crises when unpredictable shipping rules can undermine competitiveness. 

Read More: Government’s Foodgrains Stock Reaches 604.02 Lakh Tonnes Amid Ongoing Procurement! 

Current Government Interventions 

The Directorate General of Shipping has taken steps to mediate disputes through a UID-based grievance system and has appointed port-wise nodal officers.  

Additionally, waivers or relaxations of certain port charges have been facilitated at locations like Mundra and JNPT.  

While these measures are helpful, exporters argue that a more predictable regulatory framework is needed for long-term stability. 

Conclusion 

The ongoing disruptions in Gulf shipping routes have highlighted the need for comprehensive maritime reforms to ensure predictable and transparent shipping operations. Exporters are seeking government intervention to address these challenges and support the growth of India's export economy. 

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