India: Red Sea strikes alarm basmati rice exporters, government advises caution

Shippers of Indian basmati rice are concerned about the Middle East conflict after two cargo vessels were struck by drones in the Red Sea. This could force suppliers to change routes and increase costs. The Red Sea route is important for India’s sea trade to Africa, the Middle East, and the EU. Additionally, the surge in basmati rice exports due to higher demand from the Middle East has raised prices for farmers. India has banned shipments of other rice varieties to cool domestic prices, so increased basmati exports could help narrow the agricultural trade gap. The Middle East conflict has alarmed shippers of basmati rice, India’s top agricultural export commodity, after two cargo vessels with Indian crew were struck by drones in the Red Sea by suspected Houthi rebels. Some suppliers said an escalation of attacks could force them to change route. Following the emerging risks, officials from the commerce ministry last week apprised a delegation of basmati exporters of the situation ...