Iran-Israel conflict hits rice exporters: India’s basmati exports to Iran stranded at ports; 1,00,000 tonnes stuck – OXBIG NEWS NETWORK-OxBig News Network

Israel-Iran conflict impact: Approximately 1,00,000 tonnes of basmati rice bound for Iran remain stuck at Indian ports as a consequence of the Israel-Iran hostilities, according to the All India Rice Exporters Association’s statement on Monday.After Saudi Arabia, Iran stands as India’s second-largest market for basmati rice. During the 2024-25 fiscal year ending in March, India’s exports to Iran reached approximately 1 million tonnes of this fragrant grain.The Association’s president Satish Goyal confirmed that the stranded basmati rice shipments are around 18-20 per cent of India’s total basmati exports to Iran, which is a significant trading partner.The cargo remains stationed at Gujarat’s Kandla and Mundra ports, with shipping vessels and insurance coverage unavailable for Iran-destined shipments due to the ongoing Middle East situation, as stated by Goyal to PTI.Also Read | Nightmare scenario: How Iran, hit by US & Israel strikes, may choke world’s oil supply via Strait of Hormuz – explainedStandard shipping insurance policies typically exclude coverage for international conflicts, which has resulted in exporters being unable to forward their consignments.Goyal indicated that the shipping delays and payment uncertainties might result in significant financial difficulties, noting that domestic basmati rice prices have already seen a reduction of Rs 4-5 per kg.The trade body maintains communication with APEDA regarding the matter. A discussion concerning the crisis is set with Union Commerce and Industry Minister Piyush Goyal on June 30.In the 2024-25 fiscal period, India’s total basmati rice exports amounted to roughly 6 million tonnes, with key demand originating from Middle Eastern and West Asian regions. Additional significant importers include Iraq, the United Arab Emirates and the United States.Also Read | Iran-Israel war & US bombings: Should possible Strait of Hormuz closure worry India about its oil supply? Explained in 10 pointsRecent weeks have witnessed considerable intensification in the Israel-Iran conflict, with substantial military exchanges between both nations and direct US involvement in the confrontation.Indian rice exporters face additional difficulties due to the shipping disruption, compounding existing challenges such as delayed payments and currency-related complications in Iranian trade, stemming from international sanctions.