Indian Rice Exporters Brace for Volatility Amid West Asia Crisis

The Indian Rice Exporters Federation has advised members to avoid new 'cost, insurance, and freight' commitments to Iran and Gulf destinations, amid geopolitical tensions in West Asia. They should opt for 'free-on-board' terms instead to mitigate risks. The advice follows major US and Israeli attacks on Iran.

Amid escalating geopolitical tensions in West Asia, the Indian Rice Exporters Federation (IREF) has advised its members to refrain from new 'cost, insurance, and freight' (CIF) agreements for shipments headed to Iran and Gulf countries. This guidance comes in the wake of a significant US and Israeli offensive against Iran.

The IREF recommends switching to 'free-on-board' (FOB) agreements wherever possible, allowing freight, insurance, and related risks to be the responsibility of the buyer. This shift aims to safeguard Indian exporters against potential losses linked to rising shipping and insurance costs in the volatile region.

India's rice trade with Africa and West Asia represents about half of its total exports, and the federation is closely monitoring the situation. As basmati prices soar and Iran remains a crucial market, exporters are urged to be cautious of open-ended deals. Further advisories are anticipated as the situation evolves.

(With inputs from agencies.)