Archive · 15 Jan 2026
US Tariff Threat Disrupts India's Basmati Rice Exports to Iran
India's basmati rice exports to Iran are in trouble because the US has threatened to put a 25% extra tax on countries that trade with Iran.
This has made Indian rice exporters worried because Iran is a big buyer of their basmati rice.
The uncertainty has already started to affect rice prices in India.
The Indian government is planning to meet with exporters to understand their concerns and find ways to keep the shipments going.
Many exporters are routing their trade through the UAE to avoid some of the risks.
There are also problems with payments and communication due to unrest in Iran.
Meanwhile, India, which is leading the BRICS group this year, is focusing on working together to handle such global challenges.
US threatens 25% tariff on countries trading with Iran, impacting India's basmati rice exports.
India exported $468.10 million worth of basmati rice to Iran between April and November 2025-26.
Uncertainty due to the tariff threat has led to softened basmati rice prices in India.
The Indian government plans to meet with exporters to assess the impact and safeguard shipments to Iran.
Many exporters are routing trade through the UAE to mitigate risks, but payment and communication disruptions persist due to unrest in Iran.
- Who
- India's basmati rice exporters and the Indian government
- What
- Potential 25% US tariff on countries trading with Iran
- When
- Effective immediately as per Trump's announcement
- Where
- Impact on India's basmati rice exports to Iran and trade routes through the UAE
- Why
- US President Donald Trump's announcement to impose tariffs on countries doing business with Iran
- Tariff Threat
- 25% on countries trading with Iran
- Basmati Rice Exports to Iran
- $468.10 million (April-Nov 2025-26)
- Volume Exported to Iran
- 599,000 tonnes
- Impact on Prices
- Softened sharply due to postponed deals
- BRICS Chairship
- India's agenda focuses on resilience, innovation, cooperation, and sustainability
- New Development Bank
- Alternative to western-led financial systems
- Trade Route
- Majority of trade routed through UAE to mitigate risks
- Payment Risks
- Increased due to unrest and communication disruptions in Iran
Sources
Basmati Exports In Trouble? Trump’s Iran tariff threat rattles India’s rice trade
India outlines BRICS 2026 agenda as Trump threatens tariffs over Iran trade for BRICS bloc - Telegraph India
Trump tariff threat on Iran trade sparks fears for Indian basmati and tea exports
Chabahar, crude and chaos: The broader impact of the US‑Iran tensions on India
Govt to meet basmati exporters amid US tariff threat on Iran issue
Iran unrest rattles dry fruits trade, fresh produce holds firm