Proposal to Initiate Barter Trade with Iran for Basmati Rice

02-Apr-2026 11:32 AM

Chandigarh. Given the weakening economic situation of Iran—currently embroiled in intense conflict with the United States and Israel—Basmati rice exporters from Punjab have urged the government to consider initiating a barter trade mechanism. Under this arrangement,

Basmati rice would be exported from India to Iran, and in exchange—at an equivalent value—crude oil (petroleum) would be imported from Iran. Instead of paying Iran directly for the crude oil, India would make the payments to its own rice exporters.

This barter trade arrangement is expected to prove mutually beneficial for both nations during this period of crisis. War-torn Iran is in need of Indian rice, while India requires petroleum.

Iran has traditionally been a leading buyer of Indian Basmati rice, and Indian exporters are keen to avoid losing access to this vital market.

However, given the current payment crisis facing Iran, a barter trade system would serve the interests of both parties.

The Punjab Rice Millers and Exporters Association has also sent a letter to the Union Minister of Commerce, emphasizing the need to provide relief measures, concessions, and subsidies to help Basmati rice exporters overcome their current financial difficulties.