Rice exporters in Haryana are staring at payment delays and disruptions to shipments headed to Iran and Afghanistan following the US and Israeli military strikes on Iran.
“Some impact of the conflict on the trade has already started, ” Sushil Kumar Jain, Rice Exporters Association’s state unit president, said on Sunday.
The shipments which were headed to Iran or even to Afghanistan via Iran’s biggest port, Bandar Abbas, have been held up. “These shipments will remain stuck till the situation improves, and it will impact the market. Payments may also get delayed,” Jain said.
He, however, said it is too early to assess the impact, as that will depend on how long the conflict lasts.
The United States and Israel launched a major attack on Iran on Saturday, with US President Donald Trump calling on the Iranian public to seize control of their destiny and rise up against the Islamic leadership that has ruled their country since 1979.
About rice-basmati exports, Jain said India’s total annual exports, nearly 35 per cent contribution, are from Haryana.
Neeraj Kumar, a rice miller from Karnal, said, “Since yesterday, there has been a situation of uncertainty after the conflict began. Within one day of the conflict, trade has impacted, causing a fall of nearly Rs 4-5 per kg in basmati rates, which accounts for Rs 400-500 per quintal”.
“Last time in June there was an impact,” Kumar said, referring to the Iran-Israel conflict in June last year.
“Haryana has the maximum contribution in India’s basmati exports, and the prevailing situation will have an impact,” he said.
“Iran is our biggest buyer of basmati, while it is also exported to other countries, including the UAE, Oman, Yemen and Iraq. The shipments for March will be affected. The actual impact on the trade will depend on how long the conflict lasts,” he added.
While Karnal is the main hub of basmati exports, Kaithal and Sonipat also contribute to the foreign shipments.
Exporters are also concerned about the lack of insurance coverage for vessels during war, which increases their risk.
Iran is India’s second-largest basmati rice market after Saudi Arabia. India exported around 1 million tonnes of the aromatic grain to Iran during the 2024-25 fiscal year, which ended in March.
India exported approximately 6 million tonnes of basmati rice during 2024-25, with demand primarily driven by the Middle East and West Asian markets. Other major buyers include Iraq, the United Arab Emirates and the United States.