Amid Middle East conflict, India’s basmati rice shipments to Iran stuck at ports

About 1,00,000 tonnes of Indian basmati rice for Iran are stuck at ports due to the Israel-Iran conflict. No ships or insurance are available. Exporters face losses, and rice prices have dropped. Talks with the government are planned

New Delhi: Around 1,00,000 tonnes of basmati rice destined for Iran are stranded at Indian ports due to the ongoing Israel-Iran conflict, the All India Rice Exporters Association said on Monday.

Association president Satish Goyal said around 1,00,000 tonnes of basmati rice meant for Iran is currently stuck at Indian ports, with Iran accounting for 18-20 per cent of India’s total basmati rice exports.

---

The shipments are primarily held up at Kandla and Mundra ports in Gujarat, with neither vessels nor insurance available for Iran-bound cargo due to the Middle East conflict, Goyal said.

International conflicts are typically not covered under standard shipping insurance policies, leaving exporters unable to dispatch their consignments, he added.

The delay in shipments and uncertainty around payments could cause severe financial stress, he said, adding that basmati rice prices in the domestic market have already dropped by Rs 4-5 per kg.

The association is in touch with agri-export promotion body APEDA on the issue. A meeting with Union Commerce and Industry Minister Piyush Goyal is scheduled for June 30 to discuss the crisis, he added.

Iran is India’s second-largest basmati rice market after Saudi Arabia. India exported around 1 million tonnes of the aromatic grain to Iran during the 2024-25 fiscal year, which ended in March.

India exported approximately 6 million tonnes of basmati rice during 2024-25, with demand primarily driven by the Middle East and West Asian markets. Other major buyers include Iraq, the United Arab Emirates and the United States.

The Israel-Iran conflict has escalated significantly in recent weeks, with both sides exchanging heavy strikes and the US becoming directly involved in the hostilities.

The shipping disruption adds to challenges facing Indian rice exporters, who have previously dealt with payment delays and currency issues in the Iranian market due to international sanctions.