Iran Unrest Impacts Indian Basmati Rice Exporters: Payments Delayed And Shipments At Risk
By Megha Bajaj
India exports Basmati rice to several countries worldwide. Interestingly, Iran is one of India’s major Basmati rice buyers, but the recent situation in Iran has left Indian Basmati rice exporters in a state of uncertainty. The political unrest in Iran is a cause for concern and is affecting India’s Basmati rice exports to the country. Indian Basmati rice exporters are hesitant to send shipments to Iran due to fears of payment defaults and significant losses. Iran was once the largest buyer of Indian Basmati rice but it has now slipped to third place. The current situation in Iran is further exacerbating the concerns of Indian exporters. They are saying that if the situation persists, future shipments to Iran could see a further decline, leading to even greater problems.
Payments Delay- Major Difficulty Of Indian Basmati Rice Exporters
One of the major difficulties faced by Indian Basmati Rice Exporters related to Iran is payments delay Reports indicate that the money of several Indian rice exporters is stuck due to rice exports to Iran and the political turmoil there, with consignments lying at Iranian ports. Recently, it has been reported that consignments worth over Rs. 1500 crore are currently stalled due to the pathetic circumstances in Iran, leading to disruptions in cash flow and increased business risk. Inflation in Iran has significantly undermined the Iranian currency, impacting imports severly as Iran’s purchasing power has decreased considerably. Consequently, Indian rice exporters are not receiving timely payments. The Iranian rial has depreciated significantly against the US dollar, resulting in delayed payments from Iranian buyers.
Iran- Crucial In Terms Of Basmati Rice Exports
Furthermore, order cancellations have also been reported due to these issues. The situation in Iran has been worsened by the US decision to impose a 25 percent tariff on countries trading with Iran, further deteriorating the value of the Iranian rial. Amidst this situation, experts monitoring the global rice trade cite that Iran is a crucial country for India in terms of basmati rice exports, and the current situation in Iran is unfavourable for Indian basmati rice exports. The situation must improve quickly, as the risk of losses is increasing.
Rice millers from Punjab play significant role
Notably, rice millers from Haryana and Punjab play a significant role in rice exports to Iran, and if the situation doesn’t improve soon, it could impact these millers. Experts also say that the reduced demand could affect farmers, potentially putting pressure on prices. India earns significant revenue from rice exports to Iran, but in recent years, there has been a decline in India’s rice exports to Iran. According to the data, in 2024-25, India exported agricultural products worth ₹8,897 crore to Iran, of which basmati rice alone accounted for ₹6,374 crore. Between April and November of 2025-26, India exported 5.99 lakh metric tons of basmati rice to Iran.
Iran accounts for 12.7 percent of India’s total basmati rice exports
These figures demonstrate how important Iran is for India’s basmati rice exports. Currently, basmati rice purchased by Iran accounts for 12.7 percent of India’s total basmati rice exports, and this share is expected to decrease further. However, it’s important to note that this is not the first time such a situation has occurred. According to data, in 2018-19, Iran accounted for more than 33% of India’s basmati exports, but this figure is declining due to Iran’s weakening economic situation. India’s basmati rice exports to Iran decreased from approximately 1.48 million metric tons in 2018-19 to slightly over 850,000 metric tons in 2024-25. These figures illustrate how Iran’s deteriorating economic condition has impacted its purchase of basmati rice from India.
India is currently the World’s Largest Rice Exporter
Currently, Indian basmati exporters are waiting for the situation in Iran to stabilize and are exercising considerable caution regarding sending rice consignments to the country. Experts say that exporters need to be very careful at this time, otherwise, they could suffer significant losses. India is currently the world’s largest rice exporter and also the largest rice producer. India has a strong surplus of rice and is actively seeking new markets for its rice trade. India’s rice production is steadily increasing, which is why India recently surpassed China to become the world’s largest rice producer. When it comes to Basmati Rice, Pakistan is a competitor to India in terms of both production and exports. However, India is far ahead of Pakistan in terms of basmati and other rice exports.