Unrest in Iran hits basmati rice exports; prices decline
14-Jan-2026 01:25 PM
New Delhi: Iran, one of the key importers of Indian basmati rice, is currently passing through a phase of severe economic crisis and civil unrest. The Iranian currency, the rial, has undergone a sharp devaluation, with one Indian rupee now equivalent to around 12,000 rials. Due to an acute shortage of dollars, the purchasing power of Iranian importers has weakened significantly, leading to a serious payment crisis. As a result, exports of premium-quality basmati rice from India to Iran have almost come to a halt. The risk of attacks on Iran by the United States and Israel has further added to uncertainty, while millions of people are on the streets protesting and staging rebellions.
With exports to Iran stalled, domestic prices of basmati rice and paddy have witnessed a sharp decline. The situation in Iran remains highly uncertain. The Indian Rice Exporters Federation (IREF) has urged exporters shipping rice to Iran to reassess the risks arising from old contracts and to adopt secure payment mechanisms. The federation has cautioned that rushing basmati rice exports to Iran could prove highly risky and advised exporters against building large stocks for shipment to that market.
According to available data, during the first eight months of the current financial year—April to November 2025—India exported 5.99 lakh tonnes of basmati rice worth USD 468.1 million to Iran.
Iran has traditionally been among the top importers of Indian basmati rice, but its demand has remained weak during the current financial year. On one hand, there is a payment crisis, and on the other, logistical and shipment-related challenges persist. The impact of this situation has become clearly visible in domestic mandis. Over the past 8–10 days, prices of various basmati paddy varieties have fallen sharply as processors and exporters have turned cautious in their procurement. The average price of 1121 basmati paddy has declined from ₹85 to ₹80 per kg, while 1509 and 1718 varieties have fallen from ₹70 to ₹65 per kg.