Indian basmati rice prices fall 10% due to Iran war:Export bodies warn rates may reduce further; traders’ payments cargo stuck at international borders

The ongoing conflict in West Asia has already started to cast impact on India’s basmati rice prices, leading to a sharp fall in domestic rates. The basmati rice prices in India have fallen by about 7-10% since the Iran war began on Saturday, 28 February, 2026. Why Basmati rice has become cheaper in India? According to the Indian Rice Exporters Federation (IREF), the ongoing war between Iran and US and Israel have already started impacting India’s basmati rice exports to West Asia, especially Tehran. Shipping disruptions triggered by the Iran crisis and instability across key maritime routes have caused oversupply of Basmati rice in India. Exporters are facing an acute shortage of containers, suspension or cancellation of vessel calls to the Middle East, and sharply higher logistics costs. A glance at quick service grocery delivery portals reveals that basmati rice prices trade in the range of ₹75 to ₹250 per kg, depending on the brand and grain length. Piyush Goyal clarifies govt stand: War-torn Iran is one of India’s largest market of Basmati rice: According to the Indian Rice Exporters Federation (IREF), Iran is India’s one of the largest markets for Basmati rice exports. How much Basmati rice India exports? According to the IREF, between 1 April 2024 and 25 March 2025, India exported Basmati Rice worth 59.44 lakh tonnes out of total rice exports of 198.65 lakh tonnes. How much share Iran has in total exports from India? India’s exports to Iran are dominated by agricultural products, particularly basmati rice, which accounts for roughly 60% of its total export value to the country. India’s exports to Iran more than halved after Trump imposed sanctions in 2018-19 India’s exports to war-torn Iran more than halved from 2018-19 to 2024-25. The US President Donald Trump imposed sanctions on Iran during his first presidential term in 2018-19. During this 7-year period exports fell 57% to ₹10,497.54 crore in FY25 from ₹24,460.96 crore in FY19. India-Iran Total Trade Has Fallen 8 Times After Trump Imposed Sanctions In 2018-19