Clouds gather over Basmati rice exports to Iran: delays in payments and threat to shipments
14-Jun-2025 09:54 AM
Clouds gather over Basmati rice exports to Iran: delays in payments and threat to shipments
★ Iran has long been one of India’s key importers of Basmati rice, but the recent Israel‑Iran tension has intensified business uncertainty. According to sources, Iranian importers are currently routing payments through traders based in Dubai and other intermediaries.
★ Private‑sector payments are running 6–8 months late, while transactions with Iranian government entities—such as the Government Trading Corporation of Iran (GTC), Iran Trading Company (Itka), the Ministry of Agriculture Jihad (MAJ) and the Ministry of Industry, Mine and Trade (MIMT)—take 90 to 180 days to clear.
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Commerce‑ministry data show the impact on trade:
★ In FY 2021‑22, Iran accounted for 23 % of India’s Basmati exports.
★ By FY 2024‑25, its share had fallen to 12 %.
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Shares of other major destinations in 2024‑25:
Saudi Arabia: 20.25 %
Iraq: 14.3 %
United Arab Emirates: 6.13 %
Yemen: 6.03 %
★ If conditions worsen, exporters warn of losses and expect price and demand volatility in India’s domestic Basmati market as well.