Iran War Slashes Basmati Prices, 4 Lakh Tons Stuck; Exports to Middle East Halt

• Iran-Israel war severely impacts Indian basmati rice exports, leading to a 10% price drop in the last five days.
• Middle Eastern markets, including Iran, Iraq, Bahrain, Kuwait, and Qatar, are almost shut, disrupting supply.
• Approximately four lakh tons of Indian basmati rice are currently stranded on ships, at ports, or in warehouses.
• Uncertainty over payments from Iranian buyers due to US sanctions and difficulty in obtaining ship insurance halt shipments.
• Iran alone accounts for 25% of India's basmati exports, with ₹6,374 crore worth exported in FY24-25.