Impact on Basmati Rice Exports Due to Closure of the Strait of Hormuz

21-Apr-2026 11:18 AM

New Delhi. Amidst the ongoing tensions between Iran and the United States, the waterway through the Strait of Hormuz has been closed. It had been reopened just a few days ago—sparking some hope among Indian exporters—but due to a U.S. naval blockade, threats issued by the U.S. President, and his erratic statements, Iran soon closed the waterway once again.

The ceasefire period between the U.S. and Iran is set to expire tomorrow or the day after, and indications of a resumption of hostilities are emerging from both sides. Bilateral peace talks have been suspended.

If fighting breaks out again, the likelihood of the Strait of Hormuz reopening in the near future will diminish significantly.

Consequently, there are apprehensions that the export of Indian agricultural and food products—particularly Basmati rice and spices—to countries across West Asia, the Middle East, and the Gulf region could be severely impacted. Shipments had faced disruptions in March as well.

Recently, Iranian forces opened fire on two Indian merchant vessels, a development that has left shipping companies in a state of panic. This situation is not favorable for India.