Iran conflict delays basmati rice exports, affects prices in India
01 Mar 2026

The ongoing conflict in Iran is causing major disruptions to rice exports from India.

Exporters are facing payment delays and shipment hold-ups for consignments destined for Iran and Afghanistan.

The situation has already affected trade, resulting in a decline in basmati rates.

The extent of the impact on India's rice export market will depend on how long this conflict continues.

Shipments to Iran and Afghanistan delayed
Trade disruption

Sushil Kumar Jain, President of the Rice Exporters Association's Haryana unit, confirmed that the conflict has already started affecting trade.

Shipments to Iran and those going to Afghanistan via Iran's largest port, Bandar Abbas, have been delayed.

Jain said these consignments will remain stuck until the situation improves.

He also warned that this could delay payments and affect market prices for basmati rice.

Uncertainty looms over Iranian importers' deliveries
Export uncertainty

Iran is India's second-largest market for basmati rice after Saudi Arabia. In the fiscal year 2024-25, India exported around one million tons of this aromatic grain to Iran.

However, with the current conflict, exporters are worried about the fate of these consignments.

Ajay Bhalotia, Director at Fortune Rice Limited and General Secretary of the All India Rice Exporters Association, said there is a lot of uncertainty regarding whether Iranian importers will take delivery of their shipments in this situation.

March shipments at risk as conflict escalates
Export threat

The All India Rice Exporters Association has revealed that 25% of India's total basmati rice exports go to Iran, while another 20% goes to Iraq.

Together, these exports account for over two million tons of basmati rice worth over $2 billion.

Jain said shipments for March will be affected by the ongoing conflict in Iran and its impact on trade activities remains uncertain at this point.