There is a possibility of a huge drop in the export of Indian Basmati rice to Iran
19-Jun-2025 01:48 PM
New Delhi. A significant decline in the export of Indian Basmati rice to Iran appears likely, as geopolitical tensions between Iran and Israel escalate. Once India’s largest importer of Basmati rice, Iran has now slipped to the third position.
With the ongoing conflict and the threat of disruption in key shipping routes, exports to Iran may come to a halt, pushing Basmati rice prices even lower.
The export offer price of Indian Basmati rice has already dropped by more than 10 percent. If exports to Iran are completely halted, a further decline of 20 percent in prices is anticipated.
The potential closure of the Strait of Hormuz, a crucial shipping route linking the Persian Gulf with the Arabian Sea via the Gulf of Oman, would force Indian exporters to reroute shipments through the Cape of Good Hope. This alternate route is not only longer but also significantly more expensive and time-consuming.
These developments have already impacted the domestic market. On June 17, the price of Basmati Sela rice in the Vashi market of Navi Mumbai dropped from ₹6400–6500 per quintal to ₹6000–6100.
Similarly, 1121 Basmati fell from ₹8000 to ₹7800 per quintal, while the price of 1009 Basmati dropped by ₹300 to ₹6800–6900 per quintal.
A Delhi-based exporter noted that the export offer price of Indian Basmati rice has declined from $1050–1100 per tonne last month to $900–950 per tonne now. A further 10–20 percent fall is expected if the situation worsens.
Historically, India’s Basmati rice exports to Iran have shown volatility. Exports peaked at 14.84 lakh tonnes in 2018–19, declining to 13.19 lakh tonnes in 2019–20 and then to 7.48 lakh tonnes in 2020–21.
A rebound was seen in 2021–22 and 2022–23 at 9.98 and 9.99 lakh tonnes respectively. However, in 2023–24, exports dipped again to 6.71 lakh tonnes, though they rose to 8.55 lakh tonnes in 2024–25.
Despite the uncertainty in exports to Iran, India’s total Basmati rice exports rose from 52.42 lakh tonnes in 2023–24 to over 60.65 lakh tonnes in 2024–25, driven by increased shipments to other markets.