India’s basmati rice exporters are facing rising distress as more than 60,000 tonnes of shipments remain stuck at ports amid the ongoing crisis in West Asia, particularly tensions involving Iran and neighbouring countries. The situation has disrupted trade flows and caused basmati rice prices to fall sharply, prompting industry bodies to appeal to the government for urgent relief measures.
Exporters say that the conflict in the Middle East has slowed cargo movement and reduced demand in key markets, especially in Iran, which is one of India’s most important buyers of basmati rice. With freight rates rising and uncertainty increasing among buyers, many consignments are delayed or cancelled, leaving exporters with stockpiles at Indian seaports.
Industry associations have warned that the disruption has already led to a drop in basmati rice prices by about 5–6%, affecting the competitiveness and profitability of traders. The decline comes as export orders are postponed and global buyers remain cautious due to geopolitical risks in the region.
According to exporter groups, the total value of basmati shipments affected by delays and cancellations could run into hundreds of millions of dollars. A large portion of the stuck rice, estimated at around 40,000 tonnes, was destined for Iran, reflecting the strength of the bilateral rice trade prior to the crisis.
Trade bodies have urged the central government to step in with immediate support to help exporters cope with the fallout. Proposed measures include financial aid, credit support, duty drawbacks, and steps to ease logistics bottlenecks at ports. They have also asked for promotional efforts in alternative markets to offset weakened demand from the Middle East.
Exporters say that without swift government action, many small and medium‑sized rice traders could face severe cash flow problems and mounting losses, which may also impact farmers who supply paddy.
The Ministry of Commerce has acknowledged the concerns and is reportedly reviewing the situation to determine appropriate interventions. Officials said they are monitoring global developments closely and are in touch with exporter associations to frame possible relief packages.
Also Read: Iran warns US over ground invasion
