Concerns rise among Indian rice and tea exporters over escalating tensions in the Middle East.
Published on: April 24, 2024.
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Indian Exporters Concerned About Potential Disruptions to Basmati Rice and Tea Shipments to Middle East
Indian exporters of basmati rice and tea are growing increasingly concerned about potential disruptions to their shipments to the Middle East amidst recent flare-ups in the region. This situation has raised fears among exporters regarding the impact on their businesses, as some of the world’s largest consumers of basmati rice, including Iran, Israel, and other nearby countries, could be affected.
Companies and trade groups in India have issued warnings, stating that exports from the country could be severely impacted if the situation in the Middle East escalates into violence. Exporters are closely monitoring the developments and acknowledging the critical nature of the current week.
Vijay Setia, a well-known exporter and former president of the All India Rice Exporters Association, has emphasized the potential challenges that exporters may face as tensions continue to rise. He suggests that changes to shipping routes may become necessary in order to ensure the smooth flow of exports.
According to government data, Iran alone accounted for $598 million of the total basmati rice exports, which were valued at nearly $4.59 billion, during the first 11 months of the previous fiscal year. This highlights the significance of the Middle East market, particularly Iran, for Indian basmati rice exporters.
In addition to basmati rice, tea exporters are also worried about the potential fallout. They had anticipated 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 facing renewed conflict concerns, these plans could be in jeopardy.
The uncertainty surrounding the situation in the Middle East is casting a shadow over India’s export prospects. The potential disruptions to key markets, such as Iran, pose significant challenges for exporters. They are carefully monitoring the developments in the region and assessing the potential impact on their businesses.
While the full extent of the impact remains uncertain, exporters are preparing themselves for the potential challenges that lie ahead. The next few days are 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.
Source: [Source](https://enews.alwast.net)
