Growing civil unrest and political turmoil in Iran has disrupted normal trade flows with India, particularly for basmati rice, one of India’s key agricultural exports. Widespread protests and economic instability have slowed down banking operations and port activities in Iran, making it difficult for Indian exporters to ship goods and receive payments on time.
Exporters report significant delays in payment settlements, with estimates of ₹1,200–₹2,000 crore worth of export dues pending from Iran due to disrupted banking and foreign exchange shortages. Some exporters are exploring alternative settlement methods, such as barter and structured payment guarantees, to mitigate risks, but uncertainties persist.
Shipments to Iranian ports have been impacted, with cargo routes interrupted and unloading operations delayed amid unrest and logistical challenges. This has caused a softening of basmati rice prices domestically in India as demand from a major importer slows.
Domestic basmati prices have fallen amid the trade uncertainty, affecting farmers and traders in Punjab, Haryana and other producing regions. Exporters and industry bodies, including the Indian Rice Exporters Federation, have urged members to reassess contract risks and strengthen payment safeguards, rather than halting exports entirely.
Iran has traditionally been one of India’s major basmati rice markets. The current unrest comes alongside broader economic pressures like foreign exchange shortages, which were already challenging trade before recent turmoil. Some news reports also highlight external economic pressures, such as potential tariffs imposed by the U.S. on countries trading with Iran, which could add to the uncertainty for exporters.
