Trade and Industry Minister Piyush Goyal stated on Thursday that the export of rice has been affected by issues in the Red Sea. However, a comprehensive assessment will be possible once the export data for December is available. The situation in the Bab-el-Mandeb Strait, a vital shipping route linking the Red Sea and the Mediterranean Sea to the Indian Ocean, has intensified due to recent attacks by Houthi militants based in Yemen.
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 percent of global container traffic, has witnessed increased tensions in 2023. This includes various incidents like attacks and military manoeuvres carried out by regional and global powers.
The Bab-el-Mandeb Strait, referred to as the “Gate of Tears” in Arabic, is a vital trade route linking the Mediterranean Sea and the Indian Ocean through the Red Sea and the Suez Canal. It serves as the separation point between Africa and the Arabian Peninsula.
Exporters suggest that India’s basmati rice shipments to nations such as Egypt and European countries could be adversely affected should the conflict in the Red Sea intensify.