7 months ago
Indian Rice Exports Face Uncertainty Amid Iran Crisis and Trump Tariffs
Indian companies that sell basmati rice have been facing problems recently.
First, Iran, which buys a lot of Indian rice, is having money troubles.
Their currency, the rial, has lost a lot of its value, making it hard for them to buy rice.
Also, the Iranian government stopped helping pay for food imports, which made things worse.
Because of this, some rice shipments worth ₹1,500–2,000 crore are stuck at ports.
Then, former US President Donald Trump announced that any country doing business with Iran would have to pay a 25% tariff on their trade with the US.
This has made Indian rice exporters worried because it could make trading with Iran even harder.
Some Indian rice stocks went up, like LT Foods and KRBL, while others like Sarveshwar Foods went down.
Iran is a very important market for Indian rice, so these problems could affect farmers and exporters a lot.
Indian basmati rice exporters face uncertainty due to Iran's currency depreciation and US tariff threats.
Stock prices of companies like LT Foods and KRBL rebounded, while others like Sarveshwar Foods fell.
Iran is a key market for Indian basmati rice, importing around 8.5 lakh tonnes annually.
Shipments worth ₹1,500–2,000 crore are stranded at ports due to payment and insurance issues.
US President Donald Trump's 25% tariff on countries trading with Iran has raised concerns among exporters.
- Who
- Indian basmati rice exporters and farmers in Punjab, Haryana, and western Uttar Pradesh
- What
- Stock price fluctuations and export uncertainty due to Iran crisis and US tariffs
- Where
- India, Iran, and global markets
- When
- January 12 and subsequent days
- Why
- Iranian currency depreciation, withdrawal of food import subsidies, and US tariff threats
Key facts
- Stocks Affected
- KRBL, LT Foods, AWL Agri Business, GRM Overseas, HMA Agro Products, Sarveshwar Foods
- Stock Price Changes
- Up to 8% gain, up to 2% loss
- Date
- January 12 and subsequent days
- Iran's Annual Rice Import
- 8.5 lakh tonnes (FY25)
- Iranian Currency Depreciation
- From 90,000 to 150,000 rial per dollar
- Stranded Shipments
- ₹1,500–2,000 crore
- US Tariff Threat
- 25% on countries trading with Iran
- India-Iran Trade
- $1.6–1.7 billion (2024–25)
- India's Rice Exports to US
- 234,000 tonnes (FY24)
Timeline
US hikes tariffs on Indian goods due to trade standoff.
Oil among targeted imports, causing market disruption.
Indian stocks plummet in response.
Market chaos continues as US tariffs bite.
Basmati rice exports falter due to Iran crisis and potential US tariffs.
Quotes
Prem Garg
National President of the Indian Rice Exporters Federation (IREF)
“We are not sounding an alarm, but urging prudence. In periods of geopolitical and internal instability, trade is often the first casualty. A calibrated approach is essential to protect both exporters and farmers.”
rediff.com
“Iran has historically been a pillar market for Indian basmati. However, the current internal turmoil has disrupted trade channels, slowed payments and dented buyer confidence.”
rediff.com
Indian Rice Exporters Federation (IREF)
Trade federation representing Indian rice exporters
“There is limited clarity on whether the proposed 25 per cent tariff would be levied over and above the existing 50 per cent duty.”
rediff.com
Sources
Trump Tariffs: Indian rice export stocks shrug off Iran worries; stocks rebound
GRM Overseas to Kohinoor Foods — Basmati rice stocks fall up to 3.5% due to Iranian currency crisis
Trump orders 25% tariff on nations trading with Iran, rattling India, China and Gulf allies; China opposes threat
Iran unrest hits India’s basmati rice exports, shipment halted, settlements for shipment delayed
Trump Tariff Shock Lifts Oil Prices, WTI Jumps To 60 Dollars/Barrel On Iran Trade Threat
Trump’s Iran Trade Tariff Warning Rings Alarm Bells for Indian Rice Exporters
Iran unrest hits Indian basmati rice exports, prices fall
Iran crisis leaves Indian tea exporters worried as shipments get held up
Iran unrest hits Indian basmati rice exports, prices fall sharply as payment delays mount: industry body
Donald Trump’s 25% Iran trade tariff to have almost no impact on India: Exporters’ body - Telegraph India
