As the Israel-Iran conflict enters its second week with no resolution in sight, Indian basmati rice exporters are bearing the brunt. Shipments of nearly 1 lakh tonnes of rice—worth ₹1,500 crore—meant for Iran are stranded at ports, and exporters say payments worth twice that amount are currently pending.
Exporters warn that if the situation persists, the impact will not be limited to the industry alone. It could soon trickle down to farmers, especially in the northern states where paddy transplantation is currently underway as part of the ongoing Kharif season.
India’s top basmati-producing states include Haryana, Punjab, Uttar Pradesh, Madhya Pradesh, Rajasthan and Delhi. Of these, Haryana contributes the largest share—about 35%—according to Haryana Rice Exporters Association president Sushil Jain. Key basmati-producing districts in the state include Karnal, Kurukshetra, Kaithal, Panipat and Sonepat; home to nearly 100 rice mills involved in exports.
Currently, paddy is cultivated on approximately 34 lakh acres in Haryana, yielding 68 lakh metric tonnes (MT), including 20 lakh MT of basmati rice.
Out of India’s 60 lakh MT annual basmati exports, around 10 lakh MT is shipped to Iran, which stands as the second-largest market for Indian basmati after Saudi Arabia. In fact, India exported over 6 million tonnes of basmati in 2024-25—the highest ever—and the industry had been hopeful of setting a new record this year as well.
However, the conflict has brought that momentum to a standstill. All India Rice Exporters Association president Satish Goyal said shipments bound for Iran are stuck at Indian ports—mainly Kandla and Mundra in Gujarat—due to a lack of available vessels and insurance. Standard shipping insurance typically does not cover war-related disruptions, making it impossible for exporters to move consignments.
{{/usCountry}}However, the conflict has brought that momentum to a standstill. All India Rice Exporters Association president Satish Goyal said shipments bound for Iran are stuck at Indian ports—mainly Kandla and Mundra in Gujarat—due to a lack of available vessels and insurance. Standard shipping insurance typically does not cover war-related disruptions, making it impossible for exporters to move consignments.
{{/usCountry}}Jain echoed the concern and added that Iran’s threat to close the Strait of Hormuz could severely impact shipments to other Gulf countries such as Saudi Arabia and Bahrain.
He further said the association has been in regular contact with the Agricultural and Processed Food Products Export Development Authority (APEDA), the central government body overseeing agri exports. APEDA has advised exporters to “wait and watch” for now.
A meeting with Union commerce and industry minister Piyush Goyal is scheduled for June 30 to address the crisis and push for a resolution on the stuck shipments and delayed payments.
“The delay and uncertainty are already hurting exporters financially. Domestic prices are also falling. For instance, the rate for the 1718 variety of basmati, which was ₹67–68 per kg in early June, has now dipped to ₹63,” Jain said.