India's Basmati Rice Exports Under Duress Amid Widening Israel-Iran Conflict

Around 1,00,000 tonnes of basmati rice destined for Iran are stranded at Indian ports due to the ongoing Israel-Iran conflict, the All-India Rice Exporters Association said on Monday.

The All-India Rice Exporters Association reportedly on Monday informed that 1,00,000 tonnes of Basmati rice headed to Iran are currently stranded at Indian ports amid the widening ongoing state of conflict between Iran-Israel.

Association President Satish Goyal informed that around 1,00,000 tonnes of basmati rice meant for Iran is currently stuck at Indian ports, with Iran accounting for 18-20 per cent of India's total basmati rice exports, as per media reports.

International conflicts are typically not covered under standard shipping insurance policies, leaving exporters unable to dispatch their consignments, he added.

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The delay in shipments and uncertainty around payments could cause severe financial stress, he said, adding that basmati rice prices in the domestic market have already dropped by Rs 4-5 per kg.

The association is in touch with agriculture-export promotion body APEDA on the issue. A meeting with Union Commerce and Industry Minister Piyush Goyal is scheduled for June 30 to discuss the crisis, he added.

Iran is India's second-largest basmati rice market after Saudi Arabia. India exported around 1 million tonnes of the aromatic grain to Iran during the 2024-25 fiscal year, which ended in March.

India exported approximately 6 million tonnes of basmati rice during 2024-25, with demand primarily driven by the Middle East and West Asian markets. Other major buyers include Iraq, the United Arab Emirates and the United States.

The Israel-Iran conflict has grown significantly in the past weeks, with both sides exchanging heavy strikes and the US directly involving itself after targeting its nuclear sites. 

Meanwhile, the shipping disruption adds to challenges facing Indian rice exporters, who have previously dealt with payment delays and currency issues in the Iranian market due to international sanctions.