Overview
- Industry estimates indicate basmati consignments worth over Rs 1,500 crore are held at Iranian ports, delaying remittances to Indian sellers.
- Prices for key basmati varieties in Indian mandis have softened over the past week as buyers turn cautious and deals are postponed, according to IREF.
- IREF has advised exporters to re-evaluate Iran-linked contracts, tighten payment terms, avoid Iran-focused inventory build-up, and diversify into West Asia, Africa and Europe.
- Between April and November 2025–26, India shipped 5.99 lakh metric tonnes of basmati worth $468.10 million to Iran, but exporters warn subsequent months could be weaker.
- President Donald Trump announced a 25% tariff on countries trading with Iran, with IREF noting the impact on Indian rice is uncertain as US-bound shipments already face a 50% duty.