Iran Chaos Hits India: ₹12,000 Crore Basmati Trade in Crisis

• India's basmati exports to Iran are severely impacted by rising tensions and economic sanctions, with ₹2,000 crore worth of consignments stuck at international ports.
• Iran annually imports 1.2 million tons of basmati rice from India, valued at ₹12,000 crore, with 40% coming from Punjab and Haryana.
• The crisis is fueled by the sharp depreciation of the Iranian rial against the US dollar and the withdrawal of subsidized exchange rates for food imports by the Iranian government.
• The previous 'barter system' (goods for oil) with Iran ended after India stopped importing Iranian oil, further complicating trade.
• Halted exports have led to a ₹3-₹4 per kg drop in domestic basmati prices, threatening farmers' income and disrupting the trade cycle.

Why It Matters: Iran's economic turmoil and sanctions have severely disrupted India's ₹12,000 crore basmati trade.