Indian Basmati Exporters May Change Route Over Red Sea Strikes

New Delhi, Dec 26 (KNN) The Commerce Ministry apprised a delegation of basmati exporters last week regarding the attacks on two cargo vessels in the Red Sea by suspected Houthi rebels.

Owing to the conflict in Middle East, two cargo vessels with Indian crew were struck by drones in the Red Sea by suspected Houthi rebels, reported HT.

Some suppliers said an escalation of attacks could force them to change route.

The Red Sea route is a busy corridor for the bulk of India's sea trade to Africa, the Middle East and the European Union. "India is monitoring the situation and any heightened risks will be flagged to all stakeholders. Alternate routes could be utilized," an official told HT, requesting anonymity.

The geopolitical risks come amid a robust surge in shipments of freshly harvested Indian basmati rice due to higher demand from Middle Eastern buyers this season, which has raised prices for farmers by up to 15 per cent.

India exports over 4 million tonnes of basmati. Iran, Iraq, Saudi Arabia, the United Arab Emirates and the US are among the top buyers.

(KNN Bureau)