Export of Indian Basmati rice to Iran expected to be close to last year
24-Jun-2025 04:20 PM
New Delhi. Despite initial concerns that the ongoing conflict between Iran and Israel could impact the export of Indian Basmati rice to Iran, trade analysts now believe that total shipments are likely to remain close to last year's levels. In 2023, India exported approximately 8.60 lakh tonnes of Basmati rice to Iran.
Currently, the export offer price of Basmati rice has softened, and typically, rice is sold to Iran at a discount of about 100 dollars per tonne.
Around one lakh tonnes of rice were scheduled for export to Iran and had already been moved to the ports. However, the escalation of hostilities with Israel has delayed these shipments.
According to the All India Rice Exporters Association (AREA), a contract for the export of one lakh tonnes of Basmati rice was signed with Iranian buyers. The stock meant for shipment has been held up at Kandla and Mundra ports for several days due to the situation.
Official sources say that Indian authorities have clearly informed Iranian buyers that in case of any issue or incident during the export process, especially given the risks posed by Israeli missile attacks, the responsibility will lie with the importers. Despite this, Indian exporters are hesitant to proceed with shipments under the existing contracts.
It is important to note that Iran requires a government permit to import both general and Basmati rice. These permits are typically not issued from July to September, as this period coincides with the harvest and preparation of the new paddy crop in Iran. New import permits are usually granted from October onward, by which time the conflict is expected to ease.
Only shipments under contracts finalized before July can be dispatched during this period. If these consignments are delivered by September, total Basmati rice exports to Iran for the year may remain largely unaffected, as rice exports to the country are generally low during these months. New contracts and regular shipments are likely to resume from October.