On June 22, the US officially engaged in the ongoing conflict between Iran and Israel by deploying seven B-2 stealth bombers targeting Iran’s nuclear facilities. This intervention has further amplified instability in the already tumultuous Middle East region.
The escalation has also affected India’s Basmati rice exports.
Satish Goyal, the president of the All India Rice Exporters Association, informed CNBC-TV18 that one lakh metric tonnes of Basmati rice are currently stranded at ports.
“Insurance companies do not provide coverage for vessels entering a conflict zone, resulting in ships being immobilized at Kandla and Mundra ports,” he explained.
He added, “Exporters are in communication with the Government of India. For now, we are monitoring the situation closely. We will wait a few days to see if conditions improve. If not, we will need to make decisions on our next steps.”
Regarding the potential closure of the Strait of Hormuz and its ramifications for India, Goyal stated, “A closure of the Strait of Hormuz would severely affect us. It would obstruct our exports to the entire Gulf region. Indian exporters supply both Basmati and non-Basmati rice to countries such as Saudi Arabia, Iran, Iraq, Yemen, Jordan, Qatar, and Oman in the Gulf area. 80% of India’s Basmati rice is exported to the Gulf, with 35% going to Iran.”
According to the Ministry of Commerce and Industry, India exported Basmati rice valued at $753 million to Iran in 2024-25. In 2023-24, the value was $681 million, and in 2022-23, it reached $980 million.
