Basmati Trade Standoff: Indian Rice Exports Hit by Iran Turmoil

Indian basmati rice exports to Iran have nearly ground to a halt due to protests in Iran, risk of non-payment, and potential additional U.S. tariffs. Exporters are concerned about existing deals and the economic turmoil affecting import payments, further exacerbated by recent policy changes in Iran.

India's basmati rice exports to Iran have slowed nearly to a halt amidst nationwide protests in the Gulf nation. Suppliers are cautious about new deals due to fears of non-payments and looming U.S. tariffs, trade officials disclosed.

According to U.S. President Donald Trump, any country trading with Iran will face a 25% tariff on its U.S. commerce, a directive that has made Indian exporters wary. Akshay Gupta, head of bulk exports at KRBL Ltd, emphasized the additional challenge posed by this proposed tariff to India's rice sector.

India, Iran's largest rice supplier, accounts for nearly two-thirds of Iran's rice imports. Payment concerns for recent shipments remain high amid protests sparked by the rial's devaluation. Importers' ability to honor existing commitments is uncertain, escalating anxieties for exporters.

(With inputs from agencies.)