Impact of Israel-Iran war is now visible on India’s Basmati Rice trade. The escalated tension in the Middle East has now increased the concern of the Basmati rice exporters of Punjab. Ships carrying the Indian basmati rice meant for exporting the same to Iran, Saudi Arabia and other Gulf countries are reportedly stuck mid-way. If the conflict continues to worsen the ships may have to return mid-way. The rising tension has created havoc among basmati rice exporters from Punjab. Refusal of insurance coverage regarding the insurance of exported goods has further left exporters face a double blow.
Wider Israel-Iran War – Threat to India
The refusal from insurance companies and decline in exports of basmati rice to Iran comes at the time when Iran’s basmati rice exports from India were already being affected due to US sanctions on Iran. India reportedly exported Basmati rice worth $3.54 billion in the year 2022, out of which Iran’s share was about 23%.
As per the reports by the apex body The Agricultural and Processed Food Products Export Development Authority (APEDA) India’s total earnings from the exports of basmati rice stood at ₹48,000 crore, with Punjab contributing nearly 40%.