Port pile-up puts India’s rice export boom at risk

India's rice exporters are grappling with logistical challenges at Kandla port, risking the momentum of their burgeoning export boom. Congestion at the port is causing cargo clearance to take 35-40 days, threatening timely shipments to overseas markets. Indian Rice Exporters Federation (IREF) president Dev Garg highlighted the urgency as import permits carry tight validity periods, with Angola's permits expiring on August 31.

The federation has implored APEDA chairman Abhishek Dev for priority berthing for the MV ORIENT GLORY, which arrived with a 26,750-tonne rice cargo for Angola. The vessel's delay could lead to commercial losses, contractual liabilities, and potential rejection of consignments. The issue stems from the port's congestion, exacerbated by a shortage of containers, particularly for containerised basmati and non-basmati shipments from North India.

Garg warned that the situation could worsen as fresh-crop arrivals commence in October. The logistics bottleneck has also influenced global prices, with Indian non-basmati rice prices rising by 13% in the past month. Despite El Niño causing a decline in global rice production, India has surplus stocks and production capacity to address the global supply gap, projecting a potential increase in global demand.