New Delhi - : Exports of basmati rice have fallen due to militant attacks against merchant ships in the Red Sea, leading to 5-10% fall in basmati prices in the domestic market, exporters said.

Leading shipping lines' decision to avoid the Suez Canal route amid Houthi attacks has also impacted sunflower oil imports from Russia and Ukraine. Sunflower oil prices in the local market are likely to go up by 3-4% as international prices have increased by $30 per tonne in the last one week to $940 per tonne, trade insiders said. Basmati exporters said the export market has become sluggish and the shipping cost to places like Jeddah, Yemen, Beirut, and Durban have shot up multiple times in some cases. "Due to this freight hike, buyers are not taking cargo this time," said Vijay Setia, former president at All India Rice Exporters Association. "As a result, prices of basmati rice have fallen in the domestic market now."

India annually exports 4-4.5 million tonnes of basmati rice. Gulf countries are the biggest buyers, accounting for nearly 80% of the country's basmati exports.
While Maersk has said it will resume operations in the Red Sea route, exporters say the shipping line is yet to declare when it will start operations.

Sunflower oil importers said the import price has shot up by $30 per tonne, which will impact domestic prices of sunflower oil.