The ongoing tensions involving Iran, Israel and the US are beginning to affect trade far beyond the battlefield. One sector now feeling the heat is India’s basmati rice export market. With much of India’s basmati going to the Middle East, exporters and farmers are growing worried about what may lie ahead.
India sends nearly 72% of its total basmati exports to Middle Eastern countries. As conflict spreads in the region, uncertainty has started to cloud this important trade. If the war continues for a long time, exports could fall sharply, and farmers may end up paying the price.
Shipments worth hundreds of crores of rupees are currently stuck at ports. At the same time, payments worth crores have been delayed. This has added to the anxiety of exporters.
EXPORTERS RAISE CONCERNS
Ashok Sethi, Director of the Punjab Basmati Rice Exporters Association (PBREA), says that Middle Eastern countries are the largest buyers of Indian basmati, largely because it is widely used in dishes like biryani. With war affecting the region, the entire trade is facing trouble.
Most of the rice is exported on credit, which means payments are made later. With the current instability, exporters fear they may not receive their money on time. There are also concerns that some deals may be cancelled.
Sethi has called on the central government to ensure payment guarantees through the Export Credit Guarantee Corporation. He warned that whether exports slow down or stop completely, farmers will suffer in both cases. Lower demand would push prices down, directly affecting farmers’ incomes.
MIDDLE EAST KEY TO INDIA’S BASMATI TRADE
In 2024–25, India exported 60,65,483 metric tonnes of basmati rice, earning foreign exchange worth Rs 50,312 crore. Of this amount, Rs 36,139 crore came from Middle Eastern countries alone.
Five of the biggest buyers of Indian basmati are Saudi Arabia, Iraq, Iran, the United Arab Emirates and Yemen. Together, these five countries account for 67% of India’s total basmati exports.
Interestingly, although Pakistan also produces basmati rice, these countries prefer Indian basmati over Pakistani varieties.
SAUDI ARABIA AND IRAN AMONG TOP BUYERS
According to data from the Directorate General of Commercial Intelligence and Statistics (DGCIS), Saudi Arabia is the largest importer of Indian basmati. In 2024–25, it bought rice worth Rs 10,191 crore.
Iran imported agricultural products worth Rs 8,897 crore during the same period. Out of this, basmati rice alone accounted for Rs 6,374 crore. At present, Iran is the third-largest buyer of Indian basmati.
DECLINE IN IRAN’S IMPORTS
Iran was once the biggest importer of Indian basmati. In 2018–19, it held a 33.03 per cent share, and in 2019–20, a 28.45 per cent share. Over time, however, it has slipped to third position.
Imports have steadily declined. In 2018–19, Iran bought 14,83,697 metric tonnes of basmati from India. This fell to 13,19,156 tonnes in 2019–20. By 2022–23, it had dropped to 9,98,877 tonnes, and in 2024–25, the figure was 8,55,133 tonnes.
Experts believe that recent protests in Iran and now the war could further damage exports between December 2025 and March 2026. In such uncertain conditions, importers may hesitate to place orders, and exporters may worry about payment security.
INDIA’S STRONG POSITION IN GLOBAL MARKET
Despite efforts by Pakistan to challenge India’s basmati trade in markets such as the European Union, Australia and New Zealand, Indian basmati continues to dominate globally.
Today, basmati rice makes up around 20% of India’s total agricultural exports. It remains highly valued in international markets.
However, exporters warn that if the war involving Iran, Israel and America continues for an extended period, India’s basmati trade could face serious disruption, and Indian farmers may bear the brunt of it.
