Iran Crisis Disrupts Basmati Trade, 1 Million Tonnes Exports At Risk As Prices Fall 4-5 Per Kg

Mumbai: Rice exporters in Haryana are facing serious problems after the recent US and Israeli strikes on Iran. Shipments going to Iran and Afghanistan have been delayed.

Many consignments are stuck at Bandar Abbas, Iran’s largest port. Goods meant for Afghanistan also pass through this port, adding to the disruption.

Sushil Kumar Jain, president of the state unit of the Rice Exporters Association, said payments may also get delayed. He added that the real impact will depend on how long the conflict continues.

Prices Fall in Domestic Market

The uncertainty has already affected basmati rice prices. Neeraj Kumar, a rice miller from Karnal, said rates have fallen by Rs 4-5 per kg within a day of the conflict. This means a drop of nearly Rs 400-500 per quintal.

Exporters fear that if the situation continues, the losses could grow. They also worry about ships not getting proper insurance during war-like conditions, which increases business risk.

Haryana’s Big Role in Exports

Haryana contributes around 35 percent of India’s total basmati rice exports. Karnal is the main hub, while Kaithal and Sonipat also send large shipments abroad.

Iran is India’s second-largest buyer of basmati rice after Saudi Arabia. During the 2024-25 financial year, India exported about 1 million tonnes of basmati rice to Iran.

Overall, India exported nearly 6 million tonnes of basmati rice in 2024-25. Major buyers include Iran, Iraq, the UAE, Oman, Yemen and the United States.

Trade Outlook Uncertain

The conflict began after the US and Israel carried out major attacks on Iran. US President Donald Trump called on the Iranian public to rise against its leadership.

Exporters say March shipments will be directly affected. If tensions rise further, demand from West Asian markets may slow down.

For now, traders are watching the situation closely. The future of basmati exports will largely depend on how quickly peace returns to the region.