US-Iran war leaves 70,000 tonne of Indian Basmati to Gulf stuck on high seas

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Basmati exporters, who were pinning their hopes on registering record-high exports this fiscal year, are now praying for an early end to the war. Industry officials noted that the conflict has disrupted shipments to West Asia, a key market for the aromatic rice, with an estimated 60,000 to 70,000 tonnes currently on the high seas, some of which are near the Bandar Abbas port.

During the April-January period of 2025-26, 5.38 million tonnes of Basmati rice were exported, an 11 per cent increase over the 4.84 million tonnes recorded in the same period last year, according to Satish Goel, President of the All-India Rice Exporters Association (AIREA).

“We were on target to achieve record 6.5 mt of Basmati export this year, but for this war. If it ends in a week it is still possible to meet the target, otherwise it will be difficult,” Goel said, adding that exporters are scheduled to meet the APEDA Chairman and other officials on Tuesday to discuss potential outcomes and how the government might provide support.

When asked about the quantity currently stuck at sea, he mentioned that the association is still assessing the figures with the government, though he added it is possible that 60,000 to 70,000 tonnes are affected. Goel said that while there has been no increase in shipping charges so far, the situation remains so fluid that it is impossible to predict what will happen next.

Tarn Taran suffers

Sources at APEDA said they are attempting to assist exporters reaching out to them, as the crisis is impacting all products, including agriculture. Due to the closure of airspace, APEDA officials are particularly apprehensive about a major impact on the export of perishables that typically rely on air cargo.

In 2024–25, India exported a record-high of 6.07 million tonnes of Basmati rice worth $5.94 billion. Of this, 1.17 million tonnes were shipped to Saudi Arabia alone, while 0.86 million tonnes went to Iran.

“The Basmati rice export from Tarn Taran and surrounding areas has been completely disrupted due to eruption of war during the month of Ramzan,” said Ashok Sethi, Director of the Punjab Rice Millers Exporters Association. He said the majority of the industry players in this region, which dominates due to its excellent quality, usually export 70 per cent of their Basmati to West Asian countries.

Punjab rice exporters fear delayed payments as a large number of shipments are being held at Indian ports or are stranded en route, potentially missing delivery schedules for Ramadan. Sethi said the association has sought the Central Government’s assistance for the Basmati industry.

Active buying in Jan-Feb

Former AIREA President Vijay Setia noted that Iran bought rice actively over the past two months, likely in anticipation of a conflict. Consequently, Basmati prices increased by Rs 10–15 per kg due to Iranian demand.

“Shipping liners have announced force majeure. The Government should issue a directive to container companies not to penalise exporters or impose charges for delay (in emptying containers),” Setia said, adding that ships are also taking U-turns or being rerouted, resulting in delayed deliveries.

BV Krishna Rao, President of The Rice Exporters Association, which primarily deals with non-Basmati shipments, confirmed that rice exports to the Gulf will be hampered by the standoff with Iran.

Published on March 2, 2026