Basmati Exporters Seek ‘Force Majeure’ Relief Amid Gulf Tensions

Amid escalating geopolitical tensions in the Gulf region, India’s basmati rice farmers and exporters have urged the government to invoke the legal provision of force majeure to mitigate mounting trade losses.

In a representation to the Arab desk of the Federation of Indian Chambers of Commerce and Industry, exporters highlighted that the ongoing crisis has severely disrupted shipping operations, turning routine trade challenges into what they describe as a “full-blown trade emergency.”

Exporters argued that they are being unfairly penalized by shipping companies through detention, demurrage, and storage charges, despite the disruptions being beyond their control. Many stated that export orders had already been accepted, consignments prepared, and containers loaded and gated in before the crisis intensified in late February.

They emphasized that the situation meets the criteria for force majeure—a legal principle that allows parties to be excused from contractual obligations due to unforeseen events such as war or major disruptions. Additionally, exporters cited the doctrine of frustration of contract, under which agreements may become void if performance is rendered impossible.

The exporters have requested the government to officially recognize the Gulf crisis as a force majeure event effective March 1, and to direct immediate waivers on all related port and shipping charges.

Source: IE