US Pressure on Iran Threatens India's Basmati Trade, Prices Fall

• Former US President Donald Trump's threat of a 25% tariff on countries trading with Iran has created uncertainty for Indian Basmati rice exporters.
• Iran is India's third-largest Basmati market, accounting for $753.20 million (0.855 million tonnes) in FY 2024-25.
• Despite official figures, a significant volume of Basmati reaches Iran via Dubai, utilizing the UAE's banking system for safer transactions.
• The uncertainty has led to a drop in Basmati prices in Indian markets; Pusa Basmati-1509 fell from Rs 68 to Rs 63-64 per kg.
• Iran's abolition of subsidized foreign exchange has made imports more expensive, further impacting the Basmati trade.

Why It Matters: US tariff threats and Iran's economic policies are severely impacting India's crucial Basmati rice exports to Iran.