Overview
- Trade with Iran has slowed to a near standstill as protests disrupt communications and payments, leaving Indian basmati consignments at Iranian ports.
- About ₹2,000 crore in export payments are stuck, according to the Indian Rice Exporters Federation, which reports buyers cannot remit funds or honor contracts.
- President Donald Trump announced a 25% tariff on countries doing business with Iran, unsettling exporters as enforcement details and overlap with an existing 50% US tariff on India remain unclear.
- Iran bought nearly 598,000 tonnes of Indian basmati between April and November, yet uncertainty has pushed key wholesale prices in India down about 7% over the past week.
- Exporters are shifting to secured payment mechanisms, routing some transactions through the UAE, and limiting exposure, with KRBL citing direct Iran exposure of about $8–10 million.