India’s rice exports are facing uncertainty as escalating defense force tensions in West Asia disrupt shipping and payments to key markets, including Iran, Afghanistan, and other Gulf countries.
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India’s basmati rice exports threatened by Middle East tensions Photo: (CANVA)
India’s rice exports are facing uncertainty as escalating defense force tensions in West Asia disrupt shipping and payments to key markets, including Iran, Afghanistan, and other Gulf countries. Exporters maintain raised concerns about delayed payments and stalled shipments, particularly for basmati rice, which accounts for nearly half of India’s exports to 5 West Asian countries — Saudi Arabia, Iran, Iraq, the UAE, and Yemen.
Following the US-Israel strike on Iran on Saturday, fears of wider regional instability and doable restrictions on shipping by the Strait of Hormuz maintain intensified. The Indian Rice Exporters Federation (IREF) told people to book particular of entering contemporary ‘charge, insurance, and freight’ (CIF) contracts for Iran and Gulf locations and as a replacement utilize ‘free-on-board’ (FOB) terms to shift shipping and insurance risks to customers.
Exporters Warn of Rising Expenses and Delays
The federation highlighted that traits in Iran and the UAE may maybe maybe well straight away pressure up bunker gasoline prices and disrupt container and bulk vessel availability. Insurance coverage premiums may maybe maybe well furthermore upward push sharply if tensions aggravate, exposing exporters to losses on fastened-mark contracts. “Some affect of the battle on the switch has already started,” mentioned Sushil Kumar Jain, president of the Rice Exporters Association’s Haryana unit. Shipments to Iran and Afghanistan by technique of Bandar Abbas port maintain already been held up, delaying deliveries and payments.
Basmati Market Faces Volatility
Basmati rice, the put India instructions over 70% of global production, is doubtlessly the most susceptible segment. In 2024-25, India exported spherical six million tonnes of basmati rice, rate nearly Rs 50,000 crore, with West Asia utilizing quiz, per APEDA. Punjab and Haryana, contributing roughly 75% of top rate basmati exports, are anticipated to be hit hardest. Ranjit Singh Jossan, vp of the Basmati Exporters Association in Punjab, warned that prolonged battle may maybe maybe well within the reduction of prices and straight away have an effect on growers. Between April and December 2025, basmati exports to West Asia had been Rs 27,197 crore, with Iran by myself importing top rate grain rate Rs 6,000 crore.
