Tensions following recent military strikes on Iran are causing significant disruptions to India’s rice export sector, with shipments bound for Iran and neighbouring countries delayed and payments at risk.
Rice exporters, particularly in Karnal and other parts of Haryana, report that consignments headed to Iran through the port of Bandar Abbas have been held up as the conflict intensifies. This has already begun to weigh on basmati rice markets, with rates dropping by around ₹4–5 per kg amid uncertainty.
Exporters also say payment cycles are becoming unsettled as buyers delay settlements amid rising geopolitical risk, prompting worries over cash flow and foreign exchange exposure. Insurance coverage for vessels transiting conflict-affected waters has become more expensive or unavailable, adding to logistical headaches.
Industry associations are advising traders to pass on shipping cost risks to buyers and avoid unhedged, open-ended contracts given the heightened volatility. They warn freight and insurance costs could escalate sharply if tensions persist.
The Middle East region, including countries such as Saudi Arabia, Iraq and United Arab Emirates, remains a crucial market for Indian rice — especially aromatic basmati — accounting for a large share of export volumes. Continued instability could ripple across trade flows and affect prices and delivery timelines further.
For now, exporters are monitoring developments closely, with many shipments stalled until there is clarity on maritime safety conditions and payment channels.
