Does US-Iran crisis affect India's rice export?

In the last three decades, Indian agriculture contributed immensely to global food production with the share of export value of rice being the highest in the export of agricultural products. India has been a significant exporter of rice since the early 1980s.

Indian rice exports to Iran have been highly affected by the crisis between the United States and Iran after the killing of Iranian General Qasem Soleimani by United states in a drone attack.

Further increase in the tension between the US and Iran will have effects on India's exports to the Persian Gulf nation exporters body FIEO said.

Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said so far exporters have not flagged any concerns related with exports to Iran.

All India Rice Exporters Association (AIREA ) president Nathi Ram Gupta said, "The growing tension between Iran and US will definitely affect India’s rice industry as traders are worried about exports to Iran."

Iran is a key trading partner of India. Its major exports to India are oil, fertilisers and chemicals, while it imports cereals, tea, coffee, basmati rice, spices and organic chemicals, among others.

The Iran-USA clash may disturb India’s rice trade with Iran, which is the biggest consumer of the Indian aromatic long-grained basmati rice and imports about 25% of India’s total rice exports amounting to 4.5 million tonnes every year.

As per figures by AIREA, Iran is the largest basmati importer from India which in the past three years had increased to 14.83 lakh MT (Rs 10790 crore) in 2018-19 from 7.16 lakh MT (Rs 3778 crore) in 2016-17.

as per India today news, in 2019, India exported basmati rice worth Rs 32,800 crore, out of which rice worth Rs 10,800 crore was imported by Iran. However, the exporters are yet to receive payments amounting to more than Rs 500 crore from Iran.

Iran had withheld the payments following some currency issue. India has received up to 80 per cent of the payments and 20 per cent have still not been released. However, exporters trusted the buyers and started sending the shipments to Iran this year.

This crisis also hit the international market, market benchmark Sensex tumbled 162 points on Friday as global investors turned risk-averse. Brent crude futures surged 4.4 per cent to USD 69.16 per barrel. Indian rupee (INR) fell sharply at 4 per cent against the US dollar (USD), spooked by a surge in global oil prices to 71.77 at day's low against the US dollar.

Rice exporters now fear that the US-Iran crisis will have a depressing impact on rice sales in India. The crisis has also impacted the rice prices in the international markets.

Rice exporters now fear that the US-Iran crisis will have a depressing impact on rice sales in India. The crisis has also impacted the rice prices in the international markets.

Indian farming community is already facing deficits and is unable to cover the cost of production, the recent export prices are an additional concern.

The rice exporters are refusing shipments to Iran due to fear of war that's why hundreds of containers were stopped at the Mundra port in Gujarat.

There are hundreds of exporters are waiting to improve the situations so they can continue exports.

Dolar Miyani (Ceo) Viru International Exporter of basmati and non-basmati rice from India.