Iran war halts basmati exports: What it means for India
Tensions from US-Israel strikes on Iran have thrown a wrench into India's basmati rice trade.
Ships are stuck at Iran's main port, leaving tons of rice stranded and exporters worried.
India is the world's top basmati supplier, and this disruption comes as exports to West Asia totalled 3.90 million tons between April-December 2025.
Detours and pricier insurance
West Asia—think Saudi Arabia, Iran, Iraq, UAE, Yemen—buys half of all Indian basmati exports.
Punjab and Haryana farmers especially rely on these markets for their premium rice.
With shipping halted and costs rising (thanks to detours and pricier insurance), exporters are scrambling for solutions.
Price swings likely
Basmati prices rose 10-15% over the past month as uncertainty grows.
Experts say more price swings are likely if the conflict drags on.
All this could hit farmer incomes hard.