NEW DELHI: The Iran-Israel conflict has severely impacted the city’s trading community, disrupting the supply of key commodities such as dry fruits and Basmati rice. India, the largest consumer of Iranian dry fruits, has particularly felt the effects of halted imports, including popular items like pistachios, almonds, and dates.
Traders have reported a sharp rise in wholesale prices of dry fruits, with some items witnessing a price hike of up to Rs 100 per kilogram.
Iran supplies nearly 70 per cent of India’s pistachio consumption, and the sudden suspension of trade has left many traders anxious. According to Ravindra Mehta, Director of the International Fruits & Nuts Organisation, “India has long been the primary market for almond kernels like Mamra and other dry fruits from Iran. However, this trade was already strained due to payment difficulties caused by U.S. sanctions. The disruption, compounded by the conflict in the region, has further aggravated the situation, with the price spike only adding to the financial strain on traders.”
The Basmati rice sector is also facing significant challenges, with Iran being one of the largest consumers of Indian rice. The closure of Iran’s Bandar Abbas port and its banks has caused a major bottleneck in the supply chain. Shipments worth over Rs 1,000 crore are currently stranded in the Indian Ocean.
Sachin Sharma, President of the Federation of Trades and Industries of India, highlighted the lack of clarity surrounding the resumption of trade activity. “There is no certainty regarding when the imports will be normalised, and this has created a sense of unease in the trading community. The importers are out of the country and there is no clarity if the shipment would be received there,” he said.
For the Basmati rice market, the effects of the trade halt have been felt in both the wholesale market and at the procurement level. “The price of Basmati rice had plummeted from Rs 7,100 per quintal to Rs 5,900 per quintal due to the uncertainty surrounding the Iranian market. Furthermore, the procurement price for paddy farmers has dropped by Rs 500 per quintal, translating to a 15 per cent decrease in market prices,” said Vinod Singhal, Secretary of the Delhi Grain Merchants Association.