The US formally entered the ongoing Iran-Israel conflict on June 22, launching seven B-2 stealth bombers to target Iran’s nuclear sites. This has made the already volatile Middle East region even more unstable.
This escalation has impacted India’s Basmati rice exports.
Satish Goyal, president of the All India Rice Exporters Association, said that one lakh metric tonnes of Basmati rice is stuck at ports.
“Since no insurance company provides cover to vessels entering a conflict zone, vessels are not moving to Iran and are stuck at Kandla and Mundra ports,” he said.
He further stated, “Exporters are in touch with the Government of India. As of now, we are in wait-and-watch mode. We will wait for a few days for the situation to improve. But if that doesn’t happen, we will decide what to do.”
Talking about the possible closure of the Strait of Hormuz and its impact on India, Goyal said, “If the Strait of Hormuz is closed, it will badly impact us. It will hamper our exports to the entire Gulf region. Indian exporters export rice (Basmati and non-Basmati) to Saudi Arabia, Iran, Iraq, Yemen, Jordan, Qatar, and Oman in the Gulf region. 80% of India’s Basmati rice is exported to the Gulf, and 35% of India’s Basmati rice is exported to Iran.”
As per the Ministry of Commerce and Industry, in 2024-25, India exported Basmati worth $753 million to Iran. In 2023-24, India exported Basmati worth $681 million, and $980 million in 2022-23.