Rice exporters urge govt to recognise Iran crisis shipping disruption as force majeure

The Indian Rice Exporters' Federation (IREF) has requested the government to issue an official advisory/notification recognising the current Iran-crisis-linked shipping/logistics disruption as a force-majeure-type / exceptional circumstance. This will ease contractual performance issues and reduce undue pressure from buyers in the form of forced price reductions, penalties, or unilateral cancellations for circumstances beyond exporters’ control.

It will also support exporters’ discussions with buyers, banks, insurers and logistics partners.

IREF also said "Considering delays in cargo movement and buyer payments, we request necessary advisories to banks to provide temporary working capital support / ad-hoc facilities and suitable time-bound relaxations to ease shortages arising from the current disruption, similar to support extended during the COVID period."


IREF has also asked the government to take measures for the cargo containing rice stuck at the ports and in transit. "We request APEDA/Government to urgently take up the matter with port authorities/CFS/ICDs to waive port-related charges arising specifically due to vessel cancellations/rolled cargo beyond exporters’ control, including storage, demurrage, ground rent and other applicable charges," IREF said in a release.

The release added "Exporters should be permitted to return such cargo to origin or redirect/divert shipments to alternate destinations wherever feasible. Necessary consultations may be undertaken with Customs and RBI to ease operational, documentation and payment-related issues, including amendments in shipping documents, destination changes, and settlement procedures."

In case of cargo stuck at the destination, exporters are compelled to wait for the situation to normalise, leading to delivery delays, delayed buyer payments and working capital stress. "We request guidance/support to mitigate detention/demurrage exposure and to facilitate smoother resolution with carriers/buyers where delays are crisis-related." the release added.