India’s Basmati Exports to Iran Halted Amid Escalating Middle East Tensions

India’s basmati rice exports to Iran have hit a major roadblock, with nearly 100,000 tonnes of shipments stranded at Kandla and Mundra ports in Gujarat due to the escalating Israel-Iran conflict.

According to the All India Rice Exporters Association (AIREA), the disruption stems from a lack of available vessels and shipping insurance for Iran-bound cargo. International conflicts are typically excluded from standard marine insurance policies, leaving exporters unable to dispatch consignments or secure payments. Iran is India’s second-largest basmati rice market after Saudi Arabia, accounting for 18–20% of total exports. In FY 2024–25, India exported around 1 million tonnes of basmati rice to Iran out of a total 6 million tonnes globally.

The delay has already impacted the domestic market, with basmati prices dropping ₹4–₹5 per kg, causing financial stress for exporters. The AIREA is in talks with the Agricultural and Processed Food Products Export Development Authority (APEDA) and is scheduled to meet Union Commerce Minister Piyush Goyal on June 30 to seek intervention.

This shipping crisis adds to existing challenges in the Iran trade corridor, including payment delays and currency issues due to international sanctions.