These days, the war between Israel and Iran in the Middle East has created a similar situation. The direct impact of this geopolitical conflict is becoming visible on the Indian markets. The aromatic Basmati rice, whose taste attracts people all over the world, is today looking for a way out of Delhi’s Naya Bazaar. Exports have come to a complete standstill and the country’s traders, farmers and economy are directly bearing the brunt of this.
Where is India’s goods stuck?
According to exporters, the situation has become very worrying. Rahul of Rice Agro India says that at present about four lakh tonnes of Basmati rice is stuck at different places. Some goods are lying in the middle of the ocean, some are waiting for their turn at ports, while a huge quantity of rice is gathering dust in the warehouses despite getting firm orders. Naresh Gupta, President of Delhi Grain Merchant, clarifies that the problem is not limited to Iran only. The entire Middle East market including Iraq, Bahrain, Kuwait and Qatar is currently closed. Due to the war, the supply chain has been completely broken and movement of goods has become impossible.
Market fell 10% in 4 days
The picture was completely different in the month of February. At that time, due to strong export demand, the prices of Basmati had increased by 5 to 10 percent. But now due to the war the prices are falling. According to Radheshyam Garg, President of Rice Agro India Private Limited, since the day this struggle started, the market has been continuously collapsing. The market has fallen by 10 percent in just four days and there is a lot of uncertainty about the future. The stoppage of exports has also had a direct impact on the domestic market, due to which a decline of about 5 to 6 percent has been recorded in the prices of Basmati rice in India.
Dubai orders remained on hold
Traders were expecting excellent business this year. Deepak Goyal, President of Bawan Food Process Unit, says that Indian exporters had received a large number of orders for rice export from the recent food event held in Dubai. But the war has dashed all hopes. The problem is not just that orders are stopped. Amidst the fear of American sanctions and the circumstances of war, there is great uncertainty in receiving payments from Iranian buyers. It has now become difficult for commercial ships to get insurance cover, due to which all shipments have been stopped at various places.
Most goods go to Iran
Talking about the quality of Indian Basmati, its best production is in the fields of Punjab and Haryana. About 70 percent of our total rice exports go to these Gulf countries. Iran has the largest stake in this also. Iran alone buys 25 percent of India’s total Basmati exports. If we look at the figures, in the year 2024-25 itself, India had sold Basmati rice worth about Rs 6,374 crore to Iran. The sudden closure of this big market is a big crisis for Indian agricultural exports.