India’s Basmati Rice Exports To Iran Face Big Delay, 1 Lakh Tonnes Stuck At Ports Due To Israel-Iran Conflict
India’s basmati rice exports to Iran have stalled due to the Israel-Iran conflict, leaving about 1,00,000 tonnes stuck at Kandla and Mundra ports. No ships or insurance are available for Iran-bound goods, causing financial stress to exporters and a ₹4–5/kg drop in local rice prices. Iran, India’s second-largest basmati buyer, accounted for 1 million tonnes last year.
New Delhi: India’s basmati rice exports to Iran have come to a halt. Around 1,00,000 tonnes of rice are currently stuck at Indian ports due to the ongoing conflict between Israel and Iran, according to the All India Rice Exporters Association.
Major Ports Affected
The rice shipments are mainly stuck at Kandla and Mundra ports in Gujarat. Exporters are unable to send the consignments as no ships or insurance services are available for Iran-bound goods during this conflict.
According to the association’s president, Satish Goyal, international conflicts are not covered under regular shipping insurance. This has created a big roadblock for Indian exporters, who are now unable to send their rice to Iran.
Impact on Prices and Exporters
The delay is causing financial stress to exporters. There is also uncertainty around payments. Because of this, basmati rice prices in India have dropped by Rs 4–5 per kg in the local market.
India’s Key Market in Trouble
Iran is India’s second-largest basmati rice buyer after Saudi Arabia. In the last financial year (2024–25), India exported about 1 million tonnes of basmati rice to Iran. Iran accounts for 18–20% of India’s total basmati exports.
Overall Export Scenario
India exported about 6 million tonnes of basmati rice in FY 2024–25. The Middle East and West Asia are the largest markets, including countries like Saudi Arabia, Iraq, UAE, and the United States.
Talks Planned with Government
The association is in contact with APEDA, the agricultural export body. A meeting with Union Commerce and Industry Minister Piyush Goyal is planned for June 30 to find a solution.
Previous Challenges with Iran
Even before the conflict, Indian exporters faced payment delays and currency issues with Iran due to international sanctions. This new conflict has only made the situation worse.
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Source : Free Press Journal
