Government Assures Support to Basmati Rice Exporters

26-Mar-2026 05:37 PM

New Delhi: The Central Government has assured Basmati rice exporters of every possible form of support and assistance, including the expedited settlement of insurance claims. This assurance comes in the wake of the Iran-Israel conflict, which has created a precarious situation across the entire West Asia, the Middle East, and the Gulf region. Consequently, Indian exporters are facing numerous challenges and difficulties in shipping their Basmati rice to these destinations.

On March 25, a delegation from the All India Rice Exporters Association met with top officials from key bodies operating under the Union Ministry of Commerce and Industry—namely, the Directorate General of Foreign Trade (DGFT), the Agricultural and Processed Food Products Export Development Authority (APEDA), and the Export Credit Guarantee Corporation of India (ECGC). The delegation apprised these officials of the difficulties they were facing, and the officials, in turn, assured them of comprehensive assistance.

It is noteworthy that India is the world's largest producer and exporter of rice. Due to the Iran-Israel conflict, the shipping lane through the Strait of Hormuz—widely regarded as the gateway for cargo shipments to West Asia—has been largely disrupted. Since February 28, the movement of vessels along this waterway has been fraught with difficulties.

The government has also pledged to provide compensation to exporters to alleviate the burden of additional costs incurred on cargo shipments affected by the West Asian crisis during the period from February 15 to June 30. Regarding risks related to payments, the Export Credit Guarantee Corporation (ECGC) has stated that all claims filed under the 'Multi-Buyer Open Policy' will be settled within 30 days.