The involvement of the US in the Iran-Israel conflict with the launch of B-2 stealth bombers to target three major nuclear sites in Iran has affected India’s Basmati rice exports. About 1 lakh metric tonnes of basmati is stuck at Kandla and Mundra ports.
Confirming this, All India Rice Exporters Association president Satish Goyal said the ships are stuck at Kandla and Mundra ports and not heading towards Iran because no insurance company is ready to provide a cover to ships entering a conflict zone.
Goyal said that while exporters were in touch with the Indian government, they were in a wait-and-watch mode as of now. “We will wait for a few days for the situation to improve. But if that does not materialise, we will decide what to do next,” he said.
Commenting on the possible closure of the Strait of Hormuz and its possible impact on India, Goyal said, “If the Strait of Hormuz is closed, it will impact us severely. It will hamper our exports to the entire Gulf region. Indian companies export rice, both basmati and non-basmati, to Saudi Arabia, Iran, Iraq, Yemen, Jordan, Qatar, and Oman in the Gulf region. As much as 80 per cent of India’s basmati rice is exported to the Gulf, out of which 35 per cent is exported to Iran alone.”
According to the data of the Ministry of Commerce and Industry, India had exported basmati worth $753 million to Iran in 2024-25. The country had exported basmati worth $681 million to Iran in 2023-24. The figure stood at $980 million in 2022-23.
Haryana exporters hit hard
The heightened Iran-Israel conflict has made rice exporters in Haryana, which makes up for 30 per cent of the country’s basmati rice shipments to Iran, anxious owing to major disruptions in ship movements and payment delays. Karnal, Kaithal and Sonipat in Haryana are the main hubs of basmati exports in Haryana.
Stating that the ongoing Iran-Israel conflict has impacted the trade, Rice Exporters Association state unit president Sushil Jain said, “About 10 lakh metric tonnes of basmati rice is exported from India to Iran, out of which Haryana’s share is 30-35 per cent.
Besides, payments to the tune of Rs 1,500 crore to Rs 2,000 crore for nearly 2 lakh metric tonnes of basmati sent to Iran by Indian exporters has also got stuck due to the conflict, said Jain. Iran is the second-largest basmati rice market for India after Saudi Arabia. This disruption has only added to the challenges faced by Indian rice exporters, who had earlier dealt with payment delays and currency issues in the Iranian market as a result of international sanctions.
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