Iran-Israel Conflict Hits Haryana's Basmati Rice Exports

The Iran-Israel conflict is severely impacting rice exporters in Haryana, India, which accounts for 30% of India's basmati rice shipments to Iran. Exporters face shipping disruptions and delayed payments, while lacking insurance for vessels in wartime conditions adds to the risk. India exported around 1 million tonnes of basmati rice to Iran in 2024-25.

The ongoing escalation between Iran and Israel has begun to ripple through international markets, causing significant disruption for rice exporters in Haryana, India. Responsible for 30% of the country's shipments to Iran, these exporters are witnessing shipping disruptions and delayed payments.

Haryana's Karnal, alongside Kaithal and Sonipat, plays a vital role in fulfilling Iran's basmati rice demand. Rice shipments amounting to about 1 lakh metric tonnes are currently halted at ports, while payments ranging from Rs 1,500 crore to Rs 2,000 crore remain unresolved, according to Sushil Jain, president of the Rice Exporters Association's state unit.

The conflict increases challenges for Indian exporters who had previously contended with delays and currency issues due to sanctions. Prime Minister Modi has expressed concern to Iran's President, urging peaceful resolution as military actions between Iran and Israel intensify, with US involvement adding to the tension.

(With inputs from agencies.)