Nearly 1 lakh tonnes of Basmati rice for Export to Iran Stranded at Ports

Amid Israel-Iran Conflict, nearly 1 lakh tonnes of Basmati rice meant for Iran are stranded at Indian ports, mainly Kandla and Mundra in Gujarat. Exporters are facing major challenges due to a shortage of shipping vessels and marine insurance complications. According to the All India Rice Exporters Association (AIREA), standard marine insurance does not cover losses caused by war or conflict, leaving exporters vulnerable to massive losses if cargo is damaged during transit.

Delay in Payments due to Conflict

The situation has worsened due to severe payment delays from Iran, with nearly ₹2,000 crore in Basmati transactions currently frozen. Iran is India’s second-largest buyer of Basmati rice after Saudi Arabia, importing around 1 million tonnes annually. Haryana, which contributes around 35% of these exports, is facing significant losses.

Exporters fear the disruption could impact not only trade volumes but also India’s long-standing presence in the Iranian rice market.