US-Israel Attack On Iran Sends Shockwaves Through India’s Basmati Market Leaving Rice Exporters In Trouble As Prices Drop Overnight

Rice exporters in Haryana are running into shipment delays and payment troubles after the US and Israel bombed Iran. Basmati prices have dropped by Rs 4–5 per kg because cargo headed through Bandar Abbas is stuck. Iran is India’s second-biggest basmati buyer.

Right now, exporters in Haryana are watching their payments slow down, and shipments get held up, especially those going to Iran and Afghanistan. Sushil Kumar Jain, who leads the state Rice Exporters Association, said the conflict’s already messing with the trade.

Haryana Basmati Exports Hit as US-Israel Strikes on Iran Stall Shipments

Anything bound for Iran, or even Afghanistan through Bandar Abbas, is basically on hold. “These shipments will stay stuck until things calm down, and that’s going to hit the market. Payments will get pushed back too,” Jain told reporters.

Still, Jain said it’s tough to know exactly how bad things will get, since it all depends on how long the fighting drags on. The US and Israel hit Iran hard on Saturday. US President Donald Trump called on Iranians to take control of their future and rise up against the Islamic leadership that’s been in charge since 1979.

India-Iran Trade Impact

As for basmati exports, Jain pointed out that Haryana handles about 35 percent of India’s annual basmati shipments. Neeraj Kumar, a rice miller in Karnal, said, “Ever since this new conflict started, everything’s up in the air. Within just one day, trade took a hit as basmati prices dropped by Rs 4-5 per kg, or about Rs 400-500 per quintal.”

Kumar remembered a similar situation last June, when the Iran-Israel conflict rattled the market. “Haryana plays the biggest role in India’s basmati exports, so what’s happening now is going to have an effect,” he said.

He added, “Iran is our biggest basmati buyer. Sure, we ship to the UAE, Oman, Yemen, and Iraq too, but the March shipments are going to take a hit. We’ll only know the real damage once we see how long this conflict lasts.”

Iran Conflict Triggers Price Fall in India’s Basmati Trade

Karnal is the top basmati export hub, with Kaithal and Sonipat also sending plenty of rice abroad.

Exporters have another headache: war risk. Right now, insurance companies aren’t covering ships travelling through the region, so the risk for exporters goes up.

Iran usually buys more basmati from India than anyone except Saudi Arabia. Last fiscal year, India exported about a million tonnes of basmati to Iran.

In total, India shipped around 6 million tonnes of basmati during 2024-25, mostly to markets in the Middle East and West Asia. Other big buyers include Iraq, the UAE, and the US. 

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