Punjab Exporters Propose Barter Deal with Iran Amid Rice Export Disruptions
Oil for rice: Punjab exporters call for barter deal with Iran amid trade disruptions
The Indian Express
Image: The Indian Express
In response to trade disruptions caused by geopolitical tensions, Punjab exporters are advocating for a barter trade arrangement with Iran, exchanging crude oil for rice. This initiative aims to address rising logistics costs and safeguard India's substantial basmati rice exports, which face significant risks due to safety concerns in West Asian shipping routes.
- 01Punjab exporters propose a barter deal with Iran to exchange rice for crude oil.
- 02Over 80% of India's basmati rice exports are affected by geopolitical instability.
- 03Recent drone strike rumors have heightened safety concerns for shipments.
- 04Exporters face rising logistics costs, impacting profitability.
- 05Immediate relief measures are requested to support exporters during this crisis.
Advertisement
In-Article Ad
Amid disruptions in India's rice exports due to ongoing geopolitical tensions in West Asia, exporters from Punjab are calling for a barter trade agreement with Iran. This proposal suggests importing crude oil in exchange for rice shipments, settled in Indian rupees. The urgency for this arrangement has intensified following unconfirmed reports of a drone strike on a vessel carrying Indian rice near Dubai port, raising concerns about the safety of shipments in the region. The Punjab Rice Millers Exporters Association (PRMEA) highlighted that over 80% of India's basmati rice exports, which total more than 6 million tonnes annually valued at over ₹55,000 crore (approximately $6.6 billion USD), are at risk due to the instability in Gulf and West Asian markets. Many consignments, totaling 60,000 tonnes, are currently stranded, with rising logistics costs further complicating the situation. Exporters believe that a barter system could stabilize exports and mitigate payment risks during these uncertain times. Additionally, they are urging the Indian government to implement relief measures, such as waiving bank interest and providing financial subsidies to offset losses.
Advertisement
In-Article Ad
The proposed barter deal could stabilize rice exports and reduce financial stress for exporters, potentially preventing significant losses in a vital sector.
Advertisement
In-Article Ad
Reader Poll
Should India pursue barter trade agreements to stabilize exports during geopolitical uncertainties?
Connecting to poll...
Read the original article
Visit the source for the complete story.
