Basmati Rice Prices Drop in India; Exports to Iran Hit by 25% US Tariffs, Payment Delays & Ongoing Protest

India's Basmati rice exports to Iran are facing significant challenges following fresh 25% tariffs imposed by the US on Iran's trading partners, combined with ongoing civil unrest in the country. The Indian Rice Exporters Federation (IREF) has reported that these developments are already affecting shipments to Tehran, causing domestic Basmati rice prices to fall sharply.

US Tariffs on Iran Hit Indian Basmati Rice Exports: Domestically Basmati Rice Prices Fall; Check Rates

According to IREF data cited by news agency ANI, the domestic price of the popular 1121 Basmati variety has declined to Rs 80 per kg from Rs 85 per kg last week. Similarly, varieties 1509 and 1718 have dropped to Rs 65 per kg from Rs 70 per kg. This fall in prices comes at a time when Iran continues to be one of India's largest markets for Basmati rice.

Basmati Rice Rates Drop in India: Payment Delays and Trade Disruptions Hit Exporters

Rice exporters in India are currently grappling with multiple hardships. The IREF has highlighted issues including delayed payments by importers, uncertainties over contract enforcement by Iranian buyers, reluctance from importers to place new orders, and disruptions in trade channels. Heightened risk perception among buyers has further complicated exports.

"Iran has historically been a pillar market for Indian Basmati. However, the current internal turmoil has disrupted trade channels, slowed payments, and dented buyer confidence," Prem Garg, National President of IREF, told ANI. He added that several importers have communicated their inability to honour existing commitments and remit payments, creating uncertainty for Indian exporters.

India's Basmati Rice Exports to Iran

India exported approximately Rs 4,212.9 crore worth of Basmati rice to Iran during April-November 2025-26, amounting to 5.99 lakh metric tonnes, according to industry data. This underscores the importance of Iran as a key destination for India's premium rice exports.

Overall Basmati Rice Export Scenario

IREF data indicates that between April 1, 2024, and March 25, 2025, India exported a total of 59.44 lakh tonnes of Basmati rice, out of total rice exports of 198.65 lakh tonnes.

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