The US formally entered the Iran-Israel conflict on 22nd June by sending seven B-2 stealth bombers to strike Iranian nuclear sites. This further destabilises the already tense Middle East region. Additionally, this military escalation is now affecting India’s Basmati rice exports.

Around 1 lakh metric tonnes of Basmati rice meant for Iran are currently stuck at Indian ports, mainly Kandla and Mundra. This is due to halted vessel movement.

With insurance companies refusing to cover ships entering a conflict zone, vessels bound for Iran are not operating. This is causing a standstill in exports.

Exporters are currently in a wait-and-watch mode, staying in contact with the Indian government. They may make further decisions depending on how the situation unfolds in the coming days.

If the Strait of Hormuz is closed as a result of the conflict, it could severely disrupt India’s rice exports to the entire Gulf region. This includes Saudi Arabia, Iraq, Iran, Yemen, Jordan, Qatar, and Oman.

The Gulf accounts for 80% of India’s Basmati rice exports, with Iran alone accounting for 35%. In 2024–25, India exported Basmati worth $753 million to Iran. This was up from $681 million in 2023–24 and $980 million in 2022–23.

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