Over the past two weeks, anti-government protests in Iran combined with U.S. interference have shaken India's rice market. Once Iran was the largest buyer of Indian basmati, but it has now slipped to third place. Experts warn that if the situation continues, exports from India will decline further. Many Indian rice exporters in Iran face payment delays, causing significant concern. Consequently, the Indian Rice Exporter Federation has issued an advisory to rice exporters in Iran, highlighting that consignments worth over ₹1500 crore are stuck at ports.
Iran has been a major market for Indian agricultural products. However, ongoing protests against the regime of Iran's Supreme Leader Ayatollah Ali Khamenei are increasingly troubling businesses dealing with various produce in this market. Indian basmati rice exporters fear massive losses, as a once-thriving market appears to be collapsing.
An Important Market for India
If political turmoil in Iran continues, India's agricultural exports will be severely impacted, and exporters may be unable to recover their payments for an extended period. According to the Directorate General of Commercial Intelligence and Statistics (DGCIS), during the 2024-25 period, India exported agricultural products worth ₹8,897 crore to Iran, of which ₹6,374 crore were solely from basmati rice. Currently, Iran accounts for 12.67% of total basmati exports, anticipated to decrease over the next four months due to rising inflation. The value of the Iranian rial has dropped significantly in international markets.
Source: aajtak
Source: aajtak
Source: aajtak
Source: aajtak
Source: aajtak
Trump Escalates Tension
The Iranian rial's historic depreciation against the U.S. dollar poses challenges for Iranian importers to pay Indian exporters. Some goods are stranded at ports, and fears of transaction cancellations loom due to difficulties in receiving payments. Moreover, U.S. President Donald Trump’s announcement of a 25% tariff on countries trading with Iran has further exacerbated tensions. If basmati rice supplies to Iran remain halted, rice millers in Haryana and Punjab will be the most affected, impacting farmers due to anticipated price drops.
How Much Has Been Exported This Year?
According to Binod Kaul, Director General of the Indian Rice Exporter Federation, from April to November 2025-26, India exported 599,000 metric tonnes of basmati rice to Iran, a higher figure than the previous year. From April to November 2024-25, only 495,000 metric tonnes were exported. However, current protests are projected to badly affect exports in the December 2025 to March 2026 quarter. In such periods of uncertainty, assurance on payments for exports is a primary concern; thus, we have issued advisories for exporters, especially regarding payment caution.
Source: aajtak
Shifting Situation in Iran
Premium rice import is heavily influenced by the purchasing power of the population. Iran's evolving circumstances, reflected in the consistent decline in Indian basmati rice exports, serve as a potent indicator. During 2018-19, with shares of 33.03% and 28.45% during 2019-20, Iran was the largest buyer of Indian basmati, which has since slipped to third. As per DGCIS data, Iran imported 1,483,697 metric tonnes of basmati from India in 2018-19, declining to just 998,877 tonnes in 2022-23, and further down to 855,133 tonnes in 2024-25.
Tension Among Tea Exporters
Currently, with a share of 20.25%, Saudi Arabia is the largest buyer of Indian basmati. Iran is also a significant importer of Indian tea, with about 11,000 tonnes imported in 2024-25. The unrest is also causing anxiety among Indian tea exporters. From India, coffee, fresh fruit, spices, dairy products, pulses, and sugar are also exported to Iran, escalating concerns amongst those involved in these trades, fervently hoping for political stability in Iran.
