Trade officials reported that about 400,000 metric tonnes of Indian Basmati rice is backed up at ports and in transit and export deals are drying up as freight rates have doubled since U.S. and Israel attacked Iran on the weekend.

India is the largest exporter of aromatic basmati rice in the world. Buyers from the Middle East such as Saudi Arabia, Iran and the United Arab Emirates account for over half of the country's shipments.

Satish Goel is the president of the All-India?Rice Exporters' Association.

Goel stated that exporters have moved their stocks to ports but are unable to ship them to the Middle East due to?rising container shipping costs and the fact that no other market is able to absorb the volume. On Monday, the U.S.-Israeli air war against Iran widened as Israel attacked Lebanon and Iran struck energy infrastructure in Gulf Countries and?tankers on the Strait of?Hormuz. The Strait of Hormuz is also being avoided by tankers and container vessels as insurance companies have canceled coverage on their vessels. Global shipping rates are also rising.

Goel stated that AIREA had approached India's Trade Ministry for assistance as exporters faced storage costs and higher freight charges for stocks stored at ports.

A New Delhi-based dealer at a global trading company said that exporters do not accept new orders from the Middle East because they prioritize shipments under their existing contracts.

Disruption follows record harvest Both buyers and vendors acknowledge the unprecedented situation. Exporters could invoke force majeure if conditions continue, according to a dealer who did not want to be named because he wasn't authorised to speak to the media.

The basmati harvest in India was a record this year, and the sudden drop in export demand has brought prices down by 6%.

India and Pakistan are only two countries that produce the long-grain varieties used for biryanis,?pilafs, and other dishes. Basmati rice commands ?a premium in global markets.

Mumbai-based trader: "Basmati rice is a staple food in the Middle East and Indian supplies are really not a substitute." Once the war is over these countries will begin stocking up. (Reporting and editing by Rajendra Jadhav, Mayank Bhardwaj, Kate Mayberry).

(source: Reuters)