Archive · 16 Jun 2025
Iran-Israel Conflict May Decrease India’s Basmati Rice Exports
India's basmati rice trade with Iran is in trouble because of the conflict between Iran and Israel.
This is likely to lower the price of rice in India.
Iran is a big buyer of Indian rice.
Problems with shipping and money transfers are making it hard to trade.
Rice prices went up recently because people were worried about the conflict, but now they might go down or stay the same.
India's basmati rice exports are threatened by the Iran-Israel conflict.
Rising tensions could decrease prices, following a 15-20% increase.
Iran was the third-largest importer of Indian basmati rice in 2024-25.
Shipping disruptions and higher freight costs are impacting exports.
Exporters are facing payment delays and banking constraints.
- Who
- India, Iran, and basmati rice exporters.
- What
- Iran-Israel conflict threatens India's basmati rice exports.
- When
- Prices surged in April and May; a decline or stabilization is expected in the short term.
- Where
- India and Iran, specifically the Persian Gulf and Arabian Sea.
- Why
- Conflict leading to shipping disruptions, payment bottlenecks, and potential order reductions.
Export Challenges
Import Concerns
Trade Disruptions
Export Challenges
Shipping disruptions and rising freight costs are negatively affecting basmati rice exports.
Import Concerns
Exporters face payment delays and banking constraints in transactions with Iran.
- Major Importer (2024-25)
- Iran
- Iran's share of exports
- 12.6%
- Payment dues
- ₹1,000–1,200 crore
- Price increase
- 15–20%
- Export Price reduction
- $950–1,000 per tonne to $900–950
