Isreal- Iran war: Exports of many commodities in trouble
14-Jun-2025 01:25 PM
The situation has escalated, with both countries engaging in drone and missile attacks. As a result, Indian exports of various agricultural and food products to Iran may face disruptions, and payment issues are also expected to worsen. Key exports from India to Iran include Basmati rice, chickpeas, soya oil cake, sugar, peanuts, sesame, and spices such as cumin and turmeric.
According to available data, there were notable changes in export volumes between the financial years 2023–24 and 2024–25 (April to March). Chickpea exports from India to Iran declined from 4,959 tonnes to 3,438 tonnes, while cumin exports rose significantly from 1,180 tonnes to 3,161 tonnes. Turmeric exports also increased from 5,444 tonnes to 8,058 tonnes. Rice exports saw a sharp rise, going from 6.86 lakh tonnes to 8.63 lakh tonnes.
However, peanut exports dropped from 11,585 tonnes to 9,822 tonnes, and sesame exports decreased from 3,379 tonnes to 2,110 tonnes. Sugar exports surged from 5,431 tonnes to 22,194 tonnes, while shipments of soya de-oiled cake (DOC) fell sharply from 3.12 lakh tonnes to 1.39 lakh tonnes.
Iran is one of the major buyers of Indian Basmati rice. Indian exporters are concerned that if the conflict continues for an extended period, it could slow the pace of rice shipments and lead to payment delays. Although India remains the world's largest rice exporter and has seen a recent increase in Basmati rice exports, any disruption in trade with Iran could pose serious challenges.
Iran has long been a major market for Indian Basmati rice, along with Saudi Arabia, Iraq, and the United Arab Emirates. Exporters warn that in the event of a prolonged or intensified conflict, the process of shipping rice to Iran and securing payments could become increasingly difficult. At present, Iranian buyers are making payments through accounts based in Dubai and other international financial hubs, but continued instability may complicate these arrangements further.