Iran's subsidy cuts leave Indian basmati rice in limbo

Business Jan 13, 2026

Iran just pulled subsidies on Indian basmati rice, and it's causing a mess—₹2,000 crore worth of rice shipments are now stuck at ports.
With Iran's currency crashing and protests ongoing, Indian farmers and exporters are feeling the pinch as payments get delayed and uncertainty grows.

Prices drop, exporters rethink their game

Basmati prices in India's mandis have dropped by ₹5/kg in just a week—1121 basmati is down to ₹80/kg, while other varieties like 1509/1718 have slipped to ₹65/kg.
The Indian Rice Exporters Federation says this is all about shaken confidence and payment troubles linked to the chaos in Iran.
They're urging exporters to play it safe: secure payments, avoid overstocking, and look for new markets beyond Iran.