Iran-Israel conflict halts Indian rice exports; 14,000 tonnes stuck midway

The ongoing conflict between Iran and Israel is severely impacting India’s rice exports. From exporters in Delhi to farmers waiting at the Kota market, concern is mounting across the supply chain. Not only have rice shipments been halted, but paddy prices have also plummeted sharply.

Over 30 million sacks of paddy have arrived at the Kota market in Rajasthan, but buyers are scarce. Farmers from various districts, including Madhya Pradesh’s Hadoti region, have come to sell their crops but are unable to secure fair prices. Earlier, paddy fetched around Rs 3,900 per quintal; now, prices have dropped to Rs 3,200.

Rice traders in Delhi confirm that the Iran-Israel war has dealt a serious blow to exports. In 2024, India exported nearly 5.2 million tonnes of basmati rice to Iran, valued at approximately Rs 6,374 crore. However, this year the situation is starkly different. Around 14,000 tonnes of rice remain stranded due to the conflict, with payments delayed indefinitely.

Exporters also report disruptions in rice shipments to Saudi Arabia and Iraq, affecting small traders and farmers alike. Many farmers who previously received Rs 3,600 per quintal now face losses of up to Rs 500 per quintal.

According to government data, India accounts for nearly 40% of the global rice trade, with 60% of this rice destined for Gulf countries. Experts warn that if the war continues, it could severely disrupt the entire agricultural trade sector.

Sachin Sharma, an exporter in Delhi, explained, “Since the conflict began, we have faced significant difficulties. Rice prices for shipments to Iran have fallen from Rs 71 per kg to Rs 59, resulting in a loss of about Rs 12 per kg. This is a major setback. The government must step in to support exporters during this crisis.”

The war has also affected shipments to other Gulf nations. Ships carrying rice are currently stranded at sea, and insurance providers have withdrawn coverage, further complicating logistics.

Vikas Chand Jain, a trader at the Kota market, stated, “Every year we send thousands of tonnes of rice from Hadoti to Iran, Iraq, and Dubai. This year, however, ports and payment systems in these countries have completely shut down due to the war. We cannot dispatch goods, and rice mill owners are running out of storage space. The export halt may force mills to cease operations.”

In today’s interconnected global trade environment, the repercussions of conflicts between two countries extend far beyond borders. From Delhi to Kota, traders and farmers await government action to mitigate this growing crisis.