MP Sahney Urges Barter-Based Payment Mechanism via Asian Clearing Union (ACU) to Safeguard Basmati Rice Exports

MP Sahney Urges Barter-Based Payment Mechanism via Asian Clearing Union (ACU) to Safeguard Basmati Rice Exports

Dr. Vikramjit Singh Sahney, Member of Parliament (Rajya Sabha), has written to Union Commerce & Industry Minister Piyush Goyal highlighting the severe crisis faced by Basmati rice exporters, particularly from Punjab, amid ongoing hostilities in West Asia.

Dr. Sahney stated that that nearly 60 lakh tonnes of rice consignments are currently stranded at ports and in the high seas, leading to major disruptions in exports. The situation has further intensified following reports of a drone strike on a vessel near Dubai recently, raising serious concerns regarding the safety of shipments. Exporters are grappling with blocked consignments, delayed payments, escalating freight and insurance costs, and rising uncertainty impacting future trade.

Dr. Sahney has strongly advocated for revival of the Asian Clearing Union (ACU)-based barter mechanism, as was earlier operational for petroleum trade, to enable seamless settlement of payments by offsetting rice exports against imports such as Petroleum.

Dr. Sahney emphasized that such a mechanism would provide immediate relief to exporters and ensure continuity of trade with key markets like Iran. In addition, he has urged the Government to extend financial support, interest waiver, logistics and insurance backing, and enhanced security measures for shipments. He cautioned that the crisis has far-reaching implications not only for exporters but also for farmers and India’s global leadership in Basmati rice, calling for urgent intervention by the Centre.