image sourced from original article at The escalating conflict in the Middle East has disrupted basmati rice exports from Punjab and Haryana, which together contribute nearly eighty percent of India’s total basmati shipments. Around 140,000 tonnes of rice meant for Iran are now at risk, as uncertainty looms over trade routes and payment security. Iran, historically the largest buyer of Indian basmati, has been central to the ongoing tensions involving the United States and Israel.
Exporters fear that restrictions in the Strait of Hormuz and rising instability could delay shipments and block payments. Nearly 160,000 tonnes had recently been ordered by Iran’s state trading body, with significant quantities prepared in Punjab and Haryana. However, concerns over secure transactions and the possibility of consignments getting stuck at ports have made exporters cautious.
Industry representatives warn that higher crude oil prices could raise processing, freight and insurance costs, making exports more expensive. At the same time, any slowdown in overseas sales may temporarily soften domestic prices. Exporters are also worried about existing contracts, as backing out of prior agreements could lead to breaches, leaving them exposed to financial risk amid growing geopolitical uncertainty.
