Tension is increasing between Iran and Israel, if the situation continues like this then many things may become expensive in the future. While on one hand many things may become expensive, on the other hand the prices of Basmati Rice may reduce in India due to which Basmati rice may become cheaper. Indian Rice Exporters Federation (IREF) said that the large-scale protests in Iran are having a huge impact on India's Basmati rice export trade, due to which domestic prices have fallen drastically.
IREF said that this growing crisis has disrupted payment cycles, delayed shipments and reduced buyer confidence, the impact of which is now clearly visible in Indian rice markets. Market participants say that in the last one week, iran Due to tension, prices of Basmati rice varieties have fallen by Rs 5 to 10 per kg.
According to the export data released by the Indian Rice Exporters Federation (IREF), India exported Basmati rice worth $468.10 million (about Rs 4,225 crore) to Iran during April-November in the current financial year 2025-26, which is about 5.99 lakh metric tonnes. IREF said Iran has traditionally been one of the largest destinations for Indian Basmati, but the current instability has brought considerable uncertainty to trade flows this year.
IREF National President Dr. Prem Garg said, Iran has already been an important market for Indian Basmati. However, the current turmoil has disrupted trade channels, slowed payments and reduced buyer confidence. He told that its direct effect is visible in the Indian markets, where the prices of Basmati have decreased rapidly in a few days. Exporters must exercise extreme caution, especially with respect to credit exposure and shipment timelines.
In response to the changing situation, IREF has issued an advisory urging exporters to re-evaluate the risks associated with Iranian contracts, adopt more secure payment systems and avoid excessive use of inventory meant for the Iranian market only. The federation has also advised both exporters and farmers to act thoughtfully and cautiously to protect themselves from sudden shocks.
In addition to the Iran crisis, IREF has also taken note of the US President's recent statement that countries that continue trading with Iran could face 25 percent tariffs. The Federation made it clear that the US is already imposing a heavy tariff of 50 percent on Indian rice exports, which is much higher than the earlier duty of 10 percent.
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