India Basmati Exports Iran: Iran Crisis Hurts India’s Basmati Exports; Signs of a new economic threat?

• Basmati rice trade in crisis
• Exporters at risk due to Iran crisis
• 5,98,000 tonnes of exports from India between April and November

India Basmati Exports Iran: The Iran crisis is having a serious impact on India. On one hand, the Indians living there had to be evacuated in a hurry and on the other hand, exports of basmati rice from India to Iran are also adversely affected. These days, no new export orders are coming in. Also, payment for rice consignments sent earlier is not processed. According to the Indian Rice Exporters Federation, between April and November of the current financial year, we shipped approximately 5,98,000 tonnes of basmati rice to Iran. However, due to the Iran crisis, buyers there are now expressing their inability to pay.

IREF President Prem Garg said that contact with Iranian buyers has been lost. Garg explained that since the protests started in Tehran, shops in Iran have been closed. Internet connectivity has also been disrupted. As a result, we cannot contact buyers. Moreover, rice consignments sent from India are stuck at Iranian ports.

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Between April and November 2025, basmati exports from India to Iran increased by 20.9 percent, reaching 599,000 tonnes. In contrast, exports to Iraq and Saudi Arabia declined over the same period. In recent months, Iran has emerged as the most reliable market for Indian basmati. Major part of basmati reaches Iran via Dubai. Exporters use the UAE’s strong banking system to ship goods to Dubai, from where it is then supplied to Iran.

On January 12, Trump announced through a social media post that he would impose an additional 25% tax on countries that trade with Iran. Although the tax has yet to be officially implemented, the mere hint of it has created uncertainty in the business community. Exporters are reluctant to sign new contracts because they fear paying for goods already shipped. This uncertainty has directly affected the price. In the Haryana market, the price of Pusa Basmati-1509 increased from 54-55 per kg in October to 68 per kg in December, but has now fallen to 63-64 per kg. Similarly, the wholesale price of Pusa Basmati-1718 has also come down from 70 to 65-66.

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Pusa-1718 and Pusa-1509 varieties are in high demand in Iran because they swell more when cooked. One cup of rice yields approximately four and a half cups of cooked rice, allowing for a large, small serving in dishes like biryani. That is why the market for this breed has remained strong in Iran. From January 1, the Iranian government abolished the subsidized foreign exchange system. Earlier, importers of staples like rice were getting 28,000 tomans per dollar, which has now risen to more than 130,000 tomans per dollar in the open market. This increased import costs.