Due to the ongoing conflict between Iran and Israel, around 1,00,000 tonnes of Indian basmati rice meant for Iran are stuck at ports in Gujarat’s Kandla and Mundra. This was confirmed by the All India Rice Exporters Association.
Iran is India’s second-biggest buyer of basmati rice after Saudi Arabia. In the financial year 2024-25 (ending in March), India exported nearly 1 million tonnes of basmati rice to Iran. The currently stranded stock represents about 18–20% of those exports.
Read more: Tea Exports to Iran Stop as War with Israel Disrupts Trade; Shipments Stuck in Mumbai
Why is the rice stuck?
- Because of the Middle East conflict, ships and insurance companies are refusing to handle deliveries to Iran.
- Standard insurance doesn’t cover war-related zones, so exporters can’t send their goods.
What are the effects?
- Exporters are facing major financial losses.
- Prices of basmati rice in the Indian market have already dropped by Rs 4–5 per kg.
- Payments from Iran are also getting delayed, adding to the trouble.
The Association is in touch with the Agricultural and Processed Food Products Export Development Authority (APEDA) and will meet with Commerce Minister Piyush Goyal on June 30 to discuss possible solutions.
India exports about 6 million tonnes of basmati rice each year, mainly to Middle Eastern and West Asian countries like Iran, Iraq, UAE, and also to the USA.
Also See: Watch | Israel Launches Strikes on Iran, Smoke Seen Over Tehran Skyline
The situation has become worse in recent weeks due to rising tension and military action between Iran and Israel, with even the United States getting involved. On top of that, trade with Iran is already difficult due to international sanctions and currency issues.
