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After US tariff, Iran-Israel war casts shadow over basmati rice exports
June 23, 2025
|The New Indian Express Kochi
INDIAN basmati exporters, still reeling from the shock of a 26% tariff imposed by the US government—which is currently on hold—are facing double trouble due to the outbreak of the Israel-Iran war.
This conflict has created uncertainty in exports, resulting in stuck consignments, delayed payments, and falling prices. Notably, 15% of India's total basmati exports are destined for Iran, making it the second-largest importer after Saudi Arabia. This surplus of basmati could potentially flood the domestic market.
The crisis is likely to affect Punjab, the country's leading producer of basmati rice, with a total production share of 40%, followed by Haryana and other states.
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