India’s basmati rice exports have been hit hard by Iran’s deepening economic and political crisis, with consignments worth over ₹2,000 crore currently stranded at key ports such as Kandla and Mundra. Exporters have halted shipments amid growing uncertainty over payments, currency volatility, and clearance delays, industry body India’s Rice Experts Federation (IREF) said on Monday.
According to IREF, the sharp collapse of Iran’s currency—the rial—has disrupted trade flows, triggering concerns across India’s basmati-growing and exporting regions, particularly Punjab and Haryana. The federation warned that prolonged disruption could dent India’s overall basmati rice export performance in the current financial year.
Iran has been witnessing widespread protests against the current regime, further straining its fragile economy. Compounding the situation, US President Donald Trump’s recent announcement of a 25 per cent tariff on trade linked to Iran has intensified pressure on countries engaged in business with Tehran. In the wake of these developments, the Iranian rial has plunged to a historic low, with nearly 1.3 million rials now required to buy one US dollar.
“This currency collapse has led to high inflation and acute foreign exchange shortages in Iran,” IREF said. “The Iranian government has withdrawn subsidies on food imports, making it extremely difficult for importers to arrange payments.”
Iran is India’s second-largest market for basmati rice after Saudi Arabia, importing around 12 lakh tonnes annually, valued at over ₹12,000 crore. The current crisis has directly impacted this trade, with Iranian buyers struggling to access foreign currency and honour payment commitments.
As a result, Indian exporters have decided to hold back consignments already shipped to ports and stop fresh dispatches to Iran. “Delayed payments and heightened credit risks have forced exporters to adopt a wait-and-watch approach,” IREF noted.
Industry stakeholders fear that unless the situation stabilises or alternative payment mechanisms are worked out, farmers, millers, and exporters could face significant financial stress, with ripple effects across the basmati rice value chain.