More than 500,000 tonnes has been stuck inland and traders have stopped signing new contracts
Mumbai — Nearly a third of India’s rice exports for January are stuck due to a shortage of freight trains and most traders have stopped signing February export contracts to avoid demurrage charges, say industry officials.
The delay in Indian shipments is hitting exporters hard as vessel rates have risen to $30,000 a day and exporters need to pay as much as $500,000 in demurrage charges, wiping out their entire margin, said Himanshu Agarwal, executive director at Satyam Balajee, India’s biggest rice exporter. Thailand’s 5% broken rice prices rose last week to their highest level since mid-July 2021 at $404-$405 a tonne.
In the past traders used to switch to road transport in the absence of railway wagons, but truckers have substantially raised freight charges in the past six months after diesel prices jumped to a record high, said a dealer with a global trading firm.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Indian economy is the sixth-largest in the world, and growing rapidlyLISTEN: DeepakRamaraju from Sanlam International Investment spoke about the investment case for India on MoneywebNOW with SimonPB. Download the podcast in the link below.
Read more »
Come to India, Tesla is urged by Indian statesElon Musk and the Indian government have been in talks for years, but disagreements over a local factory and import duties have led to an impasse
Read more »
Come to India, Tesla is urged by Indian statesElon Musk and the Indian government have been in talks for years, but disagreements over a local factory and import duties have led to an impasse
Read more »
Supply-chain issues add to woes of small US businessesPeriodic staffing shortages and fewer customers also hurt small firms amid Omicron wave
Read more »
SA is going a through a commuter rail revolution. We spoke to Gibela CEO Hector Danisa about it.Under Hector Danisa, the Gibela rail consortium is not only constructing new modern trains but also rebuilding a rail industry that last built a train 40 years ago.
Read more »