Basmati shipments resume, insurance worries persist

After days of paralysis at Indian ports due to heightened tensions between Iran and Israel, relief has arrived for rice exporters. Shipments of basmati to Iran — nearly 1 lakh metric tonnes stuck at Kandla and Mundra ports — have started moving again.

However, despite the resumption, exporters from Haryana remain concerned. Their major worry: the lack of marine insurance to safeguard shipments amid a fragile geopolitical climate.

“We had nearly one lakh metric tonnes of basmati stuck at the ports, but now it has started going,” said Satish Goel, president of the All India Rice Exporters Association (AIREA). “After several days of tension and sitting idle due to circumstances beyond our control, we have been relieved due to resumption of shipments, but the situation is still fragile. Our entire trade is at risk without marine insurance coverage.”

A delegation from AIREA met Union Commerce and Industry Minister Piyush Goyal on June 30, both to mark a milestone of 6 million metric tonnes in basmati exports and to push for expanded risk coverage under the Export Credit Guarantee Corporation (ECGC).

“Currently, the ECGC offers coverage only when the buyer defaults. We urged the Union Minister to extend this to include ‘all-risk’ marine coverage to ensure protection during crises like the ongoing conflict,” Goel added.

Sushil Jain, president of the Haryana Rice Exporters Association, echoed the concern. “Without marine insurance, we are like farmers planting crops in a storm without shelter,” he said. “There is no security for us.”

Jain stressed that marine insurance is critical for export businesses, covering risks such as theft, damage, delays and natural disasters during transit. His association has also reached out to the Agricultural and Processed Food Products Export Development Authority (APEDA), seeking support to persuade insurers to offer such coverage.

Vijay Setia, former AIREA president, called the lack of marine insurance the “biggest gap” in the current trade safety net.

“Ports are considered neutral zones — no country typically targets them unless it’s a full-blown war. That makes marine insurance essential,” Setia said. “When ports are targeted, it’s not just one nation affected — it could spark a world war. Yet our shipments are not covered. If even one incident occurs, it could destroy a year’s worth of trade.”

Setia also pointed out that Iran accounts for nearly 20% of India’s total basmati exports, and 60–70% of that volume comes from Haryana — the heartland of India’s basmati cultivation.