India's Basmati Rice Exports to Iran Hit by US Threats and Local Protests

Trade Disruption Amid Rising Tensions

India's exports of basmati rice to Iran have come to a near standstill due to the escalating protests in Iran and the threat from US President Donald Trump to impose additional tariffs on countries trading with Iran. The situation has made Indian exporters cautious about entering into new contracts with Iranian buyers.

Exporters' Concerns Over Payment and Logistics

Major Indian rice exporters, such as KRBL Ltd, are expressing concerns over potential payment defaults and logistical challenges due to the ongoing unrest in Iran. "The 25% levy under the Trump framework adds an additional challenge for India's basmati rice sector," said Akshay Gupta, head exporter at KRBL Ltd. Exporters are worried about payments for rice shipped in the last two months, with some Iranian buyers reporting incomplete deliveries or abandoning their businesses due to the protests.

Impact on Iran's Food Supply

The decline in trade between India and Iran is significant for Iran's food security as India is the largest supplier of rice to Iran, accounting for nearly two-thirds of Iran's total rice imports. The disruption in supplies is expected to have a substantial impact on Iran's food market.