Oman to subsidise India food shipping route to bolster food security
Government to cover 50% of fuel and insurance costs for six months
Dubai: Oman will subsidise 50% of the fuel and insurance costs for food shipments transported by Asyad Shipping, the maritime arm of Asyad Group, on the maritime route between India and the Sultanate for up to six months, as part of government measures to strengthen food security and reduce logistics costs.
The support, which takes effect today, implements directives issued by Sultan Haitham bin Tarik during a Cabinet meeting last month, aimed at safeguarding supplies of essential food commodities, improving supply chain resilience and easing the impact of rising global logistics costs.
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State-owned Asyad said in a disclosure to the Muscat Stock Exchange that it would pass the full value of the government subsidy directly to customers shipping eligible food cargoes under the initiative, helping to lower the cost of importing essential food products into Oman.
The company currently operates one container vessel on the India-Oman trade route and said it expects the support programme to have a positive impact on its container shipping business during the subsidy period. It added that the financial impact is being assessed and will be reflected in future financial statements where applicable.
The India-Oman shipping corridor is one of the Sultanate's main supply routes for food imports, carrying staples including rice, fruit and vegetables, meat, dairy products, eggs, spices and processed foods.
The initiative forms part of a broader package of economic support measures ordered by Sultan Haitham to enhance national food security, strengthen logistics networks and mitigate the impact of global economic disruptions on businesses, particularly small and medium-sized enterprises.
