About 1 lakh tonnes of contracted quantity waiting to be shipped; new deals will be signed from October.

By Prabhudatta Mishra

India’s Basmati rice exports to Iran may be near last year’s level of 0.86 million tonnes (mt). This is because shipments are normally sold at a $100/tonne discount in addition to Iran’s demand-production mismatch, experts said.

However, about 100,000 tonnes of Basmati rice, scheduled to be shipped to Iran, has been stranded at ports over the past few days in view of the escalating Israel-Iran conflict.

According to All India Rice Exporters Association, about 100,000 tonnes of Basmati rice shipments booked for Iran have been stranded at Kandla and Mundra ports. Supple Tek Industries, Jagdamba Agrico Exports, Shiv Shakti Inter Globe Exports and D D International are some of the leading Basmati rice exporters to Iran.

Dipping volume

Official sources said that while buyers in Iran have clearly conveyed to make the shipment at their own risk as delivery cannot be guaranteed in view of threat from Israeli bombings, Indian exporters too have kept on hold for now the orders contracted earlier.

“Rice import, including Basmati, in Iran is regulated through permits, and normally no permit is issued during July-September to protect prices of domestic crops. So, only consignments of contracted prior to July get shipped. As the conflict has escalated from mid-June, a clear view can be taken when Iran allows new permit from October. If consignments reach late and exporters are able to deliver the contracted quantity even by September, the overall Basmati rice export may not be affected,” an official source said, adding the situation is so fluid that no one can have a definitive view now.

“Iran, which imported record 1.48 mt of Basmati rice from India in 2018-19, has substantially reduced the volume in last few years by raising its domestic rice (non-Basmati) production by 0.7 mt in last seven years. However, it is still deficient and the quality of aromatic Basmati rice is a preferred food item there,” said an exporter requesting anonymity. Even if there is a decline, it may be very marginal and may be close to last year, he said.

Lower realisation

In terms of export realisation, Basmati exporters, on an average, received $881/tonne from Iran, against India’s net realisation from all countries at $980/tonne in 2024-25. In April 2025, too, the export shipment to Iran was recorded at 131,920 tonnes with the unit value at $746/tonne when overall (for all countries) was $852/tonne, official data show.

“The oligopolistic negotiating strength of Iranian importers and varying quality is the major reason for the lower realisation. Indian Basmati rice export to Iran and west Asia has entered into a new phase and it requires new scrutiny and risk management,” said S Chandrasekaran, a foreign trade policy expert. 

Published Date: June 24, 2025