Synopsis

Indian basmati rice and tea exporters are anxious about the impact of Iran’s attack on Israel. Concerns over outward shipment and rising sunflower oil prices persist amidst the conflict, posing challenges for the industry.

Indian exporters of basmati rice and tea are worried following Iran’s attack on Israel, fearing it could impact outward shipment of the two commodities, even as edible oil importers said sunflower oil prices could start to rise.

Iran accounted for $598 million of the total nearly $4.59 billion worth of basmati rice exported in the first 11 months of last fiscal, as per government data. Exporters are also hoping to ship 40 million kgs of tea to Iran this year.

Countries such as Iran, Israel and adjoining nations are major consumers of basmati rice. If the region turns into a conflict zone, Indian exports could get heavily impacted, said a large rice exporter asking not to be named.

“Shipping routes will change if the tension further escalates. Then it will become a very difficult situation for the basmati rice exporters. This week is very crucial for us,” said Vijay Setia, a leading exporter and former president of All India Rice Exporters Association.

Tea exporters, who were looking forward to further expanding their business with Iran this year, are also a nervous lot. “The first two sales from Iran have been robust and we were thinking that situation will be normal this year,” said Mohit Agarwal, director of Asian Tea Company, a leading tea exporter to Iran, adding that tea shipments could be impacted if Israel retaliates, leading to escalation of the conflict.

Published Date: April 15, 2024