CHANDIGARH: The recent attack on Iran by the United States and Israel has dealt a significant blow to India’s basmati rice exporters, particularly in Punjab and Haryana, which together account for nearly 75% of the country’s premium basmati exports.
India remains the world’s leading basmati exporter, contributing over 70% of global production. In 2024–25, the country exported approximately 60 lakh tonnes of basmati rice valued at around Rs 50,000 crore, with nearly half of the shipments destined for West Asia.
In view of the escalating tensions, the Indian Rice Exporters Federation (IREF) has advised members to avoid entering into new “cost, insurance and freight” (CIF) contracts with buyers in Iran and Gulf countries. Exporters have instead been encouraged to finalize deals on a “free-on-board” (FOB) basis, ensuring that freight, insurance, and associated risks are borne by international buyers. The federation warned that the conflict could disrupt shipments and sharply raise freight and insurance costs.
According to IREF, five key destinations — Saudi Arabia, Iran, Iraq, United Arab Emirates, and Yemen — together account for nearly 50% of India’s total basmati exports.
Ranjit Singh Jossan, vice president of the Punjab Basmati Exporters Association, said the conflict threatens the long-standing rice trade between India and Iran, historically one of the largest buyers of Indian basmati. He warned that if the war continues, trade could come to a standstill, leading to mounting losses for exporters and a likely fall in basmati prices, ultimately impacting farmers.
He noted that shipping companies have reportedly halted cargo vessels mid-route. Direct shipments from India to Iran had already slowed in recent months due to geopolitical tensions. Over the past three months, around three lakh tonnes of basmati were routed to Iran via the traditional trade channel through Port of Jebel Ali, from where smaller vessels transported goods to Iranian ports. Exporters have also expressed concern over heightened risks in the Red Sea and the Strait of Hormuz.
With consignments already en route to Iran, Saudi Arabia, the UAE and Qatar, exporters are anxious about shipment disruptions and payment delays. Reports suggest that some vessels have halted at nearby ports, offloaded cargo, and issued notices stating that additional charges will be borne by exporters.
Jossan further highlighted potential delays in international payment settlements and possible banking restrictions. He cautioned that large shipments could become stranded at Indian ports, potentially driving down domestic prices. He also mentioned that Iran’s Government Trading Corporation (GTC) recently issued purchase orders for approximately 1.6 lakh tonnes of Indian basmati rice.
There are additional concerns about possible disruptions at Bandar Abbas Port, Iran’s largest commercial port, which could affect not only Iran but also trade routes linked to Afghanistan, Turkmenistan, Turkey, Uzbekistan, Tajikistan, Armenia and Russia.
Data from the Agricultural and Processed Food Products Export Development Authority (APEDA) shows that basmati exports to West Asian countries between April and December 2025 stood at Rs 27,197 crore, with major markets including Saudi Arabia, Iran, Iraq, the UAE and Yemen.