By Deji Abdulwahab
Indian Rice Exporters Federation (IREF) has attributed the sharp decline in Basmati rice costs to the escalating civil unrest and widespread protests in Iran.
IREF mentioned this in an announcement on Monday, including that the scenario had created uncertainty throughout commerce channels and triggered a pointy softening of Basmati rice costs within the home market.
“Based on the most recent export knowledge, India’s Basmati rice exports to Iran between April and November 2025 stood at 468.10 million {dollars}, with volumes reaching 5.99 lakh metric tonnes.
“Whereas Iran continues to be one among India’s most important locations for Basmati rice, the present monetary yr has seen rising stress on order flows, cost cycles, and cargo schedules.
“That is because of the prevailing instability within the nation, ” IREF mentioned.
It mentioned that the affect was now clearly seen in home markets.
“Over the previous week alone, costs of key Basmati varieties have registered a steep decline, reflecting purchaser hesitation, delayed contracts, and heightened threat notion amongst exporters,” it mentioned.
IREF appealed to stakeholders to diversify into various markets throughout West Asia, Africa, and Europe to cushion the affect of any extended slowdown in Iran-bound shipments.
It additionally took be aware of the current assertion by President Donald Trump of the USA, that international locations persevering with commerce with Iran could also be subjected to a 25 per cent tariff.
On this context, IREF mentioned that Indian rice exports to the U.S. had been already topic to a 50 per cent tariff, a pointy enhance from the sooner responsibility degree of 10 per cent.
“Regardless of this substantial tariff escalation, Indian rice exports to the U.S. haven’t witnessed a corresponding decline in quantity.
“This resilience is basically as a result of the truth that Indian rice, significantly Basmati, isn’t a like-for-like substitute for rice of Pakistani or U.S. origin.
“Moreover, Indian rice is deeply embedded within the culinary traditions of the Gulf area and the Indian subcontinent diaspora, making certain sustained client demand regardless of worth pressures,” it mentioned.
It mentioned that, presently, there may be restricted readability on whether or not the proposed 25 per cent tariff might be levied over and above the present 50 per cent responsibility or utilized in a different way.
“Even when the tariff burden had been to rise additional, the Federation doesn’t foresee a major decline in Indian rice exports to the U.S. market.
“The US stays the tenth largest marketplace for Indian rice globally and the fourth largest vacation spot for Indian Basmati, underscoring its strategic significance.”
IREF, nevertheless, expressed better concern over developments inside Iran, the place disruptions originating in native bazaars have begun to have an effect on commerce settlements.
Based on the Federation, importers have conveyed their incapacity to honour current commitments and remit funds to India, creating heightened uncertainty for exporters.
“Whereas related crises have occurred prior to now, the trajectory of the present scenario stays unclear and is anticipated to trigger additional disturbances in costs, liquidity, and commerce sentiment within the weeks forward.
“As international commerce turns into more and more intertwined with geopolitics, the scenario in Iran serves as a reminder that meals exports, significantly strategic commodities akin to rice, are extremely delicate to regional stability.
“For India’s rice ecosystem, well timed warning at this time might assist forestall deeper misery tomorrow,” it mentioned.
Commenting on the scenario, Dr. Prem Garg, Nationwide President, IREF), mentioned that Iran had traditionally been a pillar marketplace for Indian Basmati.
“Nevertheless, the present inner turmoil has disrupted commerce channels, slowed funds, and dented purchaser confidence.
“The speedy fallout is clear in Indian markets, the place Basmati costs have softened sharply inside days.
“Exporters should train heightened warning, significantly with respect to credit score publicity and cargo timelines,” he mentioned.
Mr Dev Garg, Vice President of IREF, mentioned that the fund had issued an advisory urging exporters to reassess threat related to Iranian contracts..
He mentioned they need to additionally undertake secured cost mechanisms, and keep away from overleveraging inventories meant completely for the Iran market.
“We’re not sounding an alarm, however urging prudence. In intervals of geopolitical and inner instability, commerce is commonly the primary casualty.
“A calibrated method is important to guard each exporters and farmers.
“India’s rice sector is resilient, but it surely should be safeguarded by way of well timed intelligence and accountable commerce practices,” he mentioned.(NAN)
Edited by Kadiri Abdulrahman
