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Basmati bottleneck: 1,000% freight spike rattles Ludhiana exporters

Ludhiana: Basmati rice exporters in the district are struggling in the face of the Middle East crisis as their supplies are directly disrupted, causing significant financial losses. Not only have the shippings been disrupted, but the few consignments being sent are also being dispatched at ten times higher freight costs in much lesser quantities, while uncertainty looms large in the ongoing crisis. Exporters say that although a few ports remain operational, shipments are being accepted without any clarity on delivery timelines, leaving consignments stranded at sea or held up at transshipment hubs.

Sahil Arora, director of a rice exporting firm on Pakhowal Road, said that freight charges have become nearly ten times what they used to be. “Only a few ports in the Middle East are open and consignments are reaching very late,” he said. He added that exporters who regularly ship to Qatar, Saudi Arabia, and Dubai are now scrambling to find alternative routes. “We are exploring whatever options are available and trying to deliver at minimal cost.”

“Earlier, major ports like Jebel Ali handled bulk shipments, but many such ports are closed now. Only limited operations are happening at ports like Khor Fakkan and Jeddah,” Arora said.

The delays are also affecting payment cycles, putting pressure on working capital. Despite the uncertainty, exporters said demand for food commodities like rice and basmati continues. “Earlier, buyers were holding back due to uncertainty, but food is a necessity. Now inquiries have started coming again, though deliveries remain the main challenge,” Arora added.

Another exporter, DR Pillai, who operates from near Cheema Chowk, said containers meant for Middle East destinations are getting stuck in transit. “Vessels heading to Middle East ports are being rerouted and containers are held up at transshipment ports. Some consignments are lying in dry ports and we have no clarity on when they will move,” he said. He added that shipments to Bahrain, Kuwait, and Qatar are no longer being sent, with limited vessel availability. “Only a few consignments are being moved and that too through indirect routes to Saudi Arabia. This has increased both time and cost,” Pillai said.

https://timesofindia.indiatimes.com/city/ludhiana/basmati-bottleneck-1000-freight-spike-rattles-ludhiana-exporters/articleshow/130219466.cms QR Code

Published Date: April 13, 2026

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