Rice exports impacted by problems in Red Sea: Commerce Minister Piyush Goyal

Commerce and Industry Minister Piyush Goyal on Thursday said rice exports have been impacted by the problems in the Red Sea, though a clear picture will emerge after the December exports data is known. The situation around the Bab-el-Mandeb Strait, a crucial shipping route connecting the Red Sea and the Mediterranean Sea to the Indian Ocean, has escalated due to recent attacks by Yemen-based Houthi militants.

On the impact of the Red Sea problem on India’s exports, the minister said: “So far no immediate impact we have observed…One industry which has got affected I am told is rice exports, but more details will be known once we get this December (export) figures”.The strait, vital for 30 per cent of global container traffic, has seen increased tensions with various incidents in 2023, including attacks and military manoeuvres by regional and global powers.

The Bab-el-Mandeb Strait, also known as the “Gate of Tears” in Arabic, is a crucial trade route that connects the Mediterranean Sea and the Indian Ocean via the Red Sea and the Suez Canal. It separates Africa from the Arabian Peninsula.

According to exporters, India’s basmati rice shipments to countries like Egypt and European countries may get hit if the conflict in the Red Sea escalates.

This article has been republished from The Economic Times