Houthi Challenge for India Unveiled: New Delhi’s Measures to Sustain Uninterrupted Exports


Published on: December 22, 2023.

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Houthi Headache For India: Exploring Alternatives for Uninterrupted Exports

In recent news, attacks by Houthi rebels in the Red Sea have raised concerns for Indian exports. The Indian government is now contemplating an alternative route along Africa to ensure uninterrupted shipments, which could potentially lead to a price increase of around 15% to 20% for products like Basmati rice. As a result, India has already taken measures to restrict the export of wheat, rice, and sugar in order to stabilize domestic prices.

The impact of the attacks by Houthi rebels in the Red Sea has prompted India to evaluate alternative shipping routes to ensure the smooth flow of exports. By exploring routes through Africa, Indian exporters hope to mitigate the potential disruptions in trade caused by the attacks.

One of the main products that could be affected by the situation is Basmati rice. India is one of the largest exporters of this fragrant long-grain rice variety, and any increase in transportation costs could lead to a rise in prices. The projected increase of 15% to 20% could have significant implications for both suppliers and consumers of Basmati rice.

To address this challenge, the Indian government has already implemented export restrictions on wheat, rice, and sugar. These measures are aimed at maintaining stability in domestic prices and ensuring that essential commodities remain accessible to the Indian population. The restrictions are intended to be temporary until a more viable solution is found to overcome the obstacles posed by the attacks.

India’s reliance on the Red Sea route for exports highlights the vulnerability of global trade to unforeseen disruptions. The need to find alternative shipping routes not only demonstrates the resilience of Indian exporters but also emphasizes the importance of diversification in global trade strategies. By exploring options along the African coast, India aims to safeguard its export capabilities and maintain a steady supply of goods to international markets.

In conclusion, the attacks by Houthi rebels in the Red Sea have presented a significant challenge for Indian exports. The potential price increase of around 15% to 20% for products like Basmati rice underscores the need for alternative shipping routes. The temporary export restrictions on wheat, rice, and sugar implemented by the Indian government are part of their proactive approach to addressing the situation. By exploring options along the African coast, India hopes to ensure uninterrupted exports and maintain stability in domestic prices.

Source: Hindustan Times