Nearly one lakh tonnes of basmati rice stuck at Indian ports over Iran-Israel conflicts

Kochi: Due to the escalating conflict in West Asia, nearly one lakh tonnes of Basmati rice bound for Iran is currently stranded at various Indian ports. The bulk of the consignments are stuck at Kandla and Mundra ports in Gujarat, leading to serious concerns among exporters.

According to the All India Rice Exporters Association (AIREA), the crisis has been triggered by a shortage of shipping vessels and complications surrounding marine insurance coverage. Standard marine insurance policies do not cover losses arising from international conflicts. As a result, in the current scenario, exporters face the risk of receiving nil compensation if any vessel is attacked during the transit.

The situation is further complicated by the huge delay in payments from Iran. Transactions worth nearly ₹2,000 crore related to Basmati exports have already been frozen due to the ongoing Iran-Israel conflict, AIREA revealed.

After Saudi Arabia, Iran is India’s second-largest market for Basmati rice. Annually, India exports around 1 million tonnes of Basmati rice to Iran. Haryana, which accounts for approximately 35% of these exports, is bearing the brunt of the disruption.