Conflict threatens India’s rice exports to W Asia

Rice exports from India are under threat amid escalating military tensions in West Asia, with exporters flagging concerns about payment delays and shipping disruptions to Iran, Afghanistan and several other Gulf countries.

- Gurpreet Singh Nibber

The exposure is especially high for basmati rice, as nearly 50% of India’s exports go to five West Asian countries — Saudi Arabia, Tran, Iraq, the UAE and Yemen, making the trade vulnerable to prolonged instability.

In the aftermath of the United States and Israel launching an attack on Iran on Saturday, triggering fears of wider regional instability and possible restrictions on shipping through the Strait of Hormuz, the Indian Rice Exporters Federation (IREF) on Sunday advised its members to avoid entering into new ‘cost, insurance and freight’ (CIF) commitments to Iran and Gulf destinations. Under CIF agreements, sellers bear the costs, insurance and freight for cargo transported via waterways until it reaches the buyer's port.