India’s basmati rice exports to Iran have slowed to a close to standstill amid the protests gripping the Gulf nation, with suppliers cautious of latest offers because of the threat of non-payment and potential extra US tariffs, commerce officers stated.
US President Donald Trump stated on Monday that any nation buying and selling with Iran would face a 25% tariff on its commerce with the US, a transfer exporters say has made Indian suppliers much more reluctant to signal new contracts with Iranian consumers.
“The proposed 25% levy beneath the Trump framework provides an extra problem to the Indian basmati rice sector,” stated Akshay Gupta, head of bulk exports at KRBL Ltd, a number one rice exporter.
India is Iran’s largest rice provider, with the staple accounting for almost two-thirds of all Iranian imports from the nation.
“We’re frightened concerning the funds for rice shipped within the final two months,” stated a New Delhi-based exporter, who declined to be named.
“In some instances, consumers report they didn’t obtain the total amount; in others, they’ve fled the nation due to the continued protests,” the exporter stated.
The present protests started final month in Tehran, with shopkeepers condemning the rial forex’s free fall.
Unrest has unfold nationwide amid deepening misery over financial privations arising from rocketing inflation pushed by mismanagement and Western sanctions, and curbs on political and social freedoms.
Importers have conveyed their incapability to honor current commitments and remit funds to India, creating heightened uncertainty for exporters, Dev Garg, vice chairman of the Indian Rice Exporters Federation (IREF), stated in an announcement.
India’s Ministry of Commerce and Trade declined to remark.
Iran beforehand equipped international trade to meals importers at a sponsored fee, nevertheless it has now suspended that provision, successfully making imports way more costly for consumers, stated Vijay Setia, a prime rice exporter.
India’s exports to Iran, largely meals gadgets comparable to rice, fell to $1.24 billion within the 2024-25 fiscal 12 months ending March from $3.51 billion in 2018-19, whereas imports declined to $440 million from a peak of $13.53 billion in 2018-19, Indian authorities information confirmed.
“Iran’s forex has crashed, and exporters are frightened whether or not shipments already despatched shall be cleared and whether or not consumers pays,” stated Ajay Sahai, director basic of the Federation of Indian Export Organizations.
Main Indian exports to Iran embody basmati rice and prescription drugs, whereas imports consist primarily of recent and dried fruits.
