Iran war disrupts India’s basmati trade, 4 lakh tonnes of rice stranded
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Rising tensions linked to the conflict involving Iran and Israel are beginning to disrupt India’s basmati rice exports, with industry estimates suggesting that nearly 4 lakh tonnes of shipments are currently stranded in transit or at international ports.
Export activity has slowed sharply due to uncertainty over shipping routes, war risk surcharges, and disrupted trade channels.
The disruption has created significant challenges for exporters, millers, and farmers involved in the trade.
India is the world’s leading exporter of basmati rice, with Middle Eastern countries accounting for a large share of shipments. Markets such as Iran, Saudi Arabia, Iraq, the United Arab Emirates, and Yemen together account for nearly 50 percent of India’s basmati exports.
The slowdown has also affected domestic prices.
Traders in major rice mandis reported that basmati prices have fallen by as much as Rs 1,000 per quintal. Varieties such as Basmati Sela 1509, Basmati 1121, Sugandha, and Sharbati are facing disruptions as shipping companies raise war risk tariffs and alter delivery routes.
The impact is being strongly felt in districts such as Raisen and Narmadapuram, where exporters say orders have slowed significantly.
Sachin Verma, president of the Aparna Food Mills Association in Raisen, said additional charges have increased export prices by Rs 8 to Rs 10 per kilogram. He added that in several cases, shipping companies have diverted consignments to alternative ports, raising costs and causing delays.
Pranjal Malani, a rice trader, said nearly 4 lakh metric tonnes of basmati rice remain stuck at ports or in transit, delaying payments and creating financial stress for exporters. Container costs have risen from about $1,800 to nearly $3,800, further increasing pressure.
However, All India Rice Exporters Association General Secretary Ajay Bhalotia said the disruption could be temporary if tensions ease and trade routes stabilise.