Will India's Gulf-bound rice exports resume after the ceasefire?
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Synopsis
The recent Israel-Iran ceasefire has revitalized hope for India's Basmati rice exporters as shipments to the Gulf region can now resume. With Iran being a major market, this development brings relief to exporters and positively impacts the stock market. Dive into the details of this significant trade update.
Key Takeaways
- Ceasefire between Israel and Iran allows Indian rice exports to resume.
- Iran accounts for 35% of India's total Basmati shipments.
- About 100,000 tonnes of rice were previously stranded.
- Stock market shows positive trends for rice exporters.
- Export restrictions were placed to manage domestic supply.
New Delhi, June 25 (NationPress) The recent ceasefire between Israel and Iran has opened the door for India’s Basmati rice exports to the Gulf region, a critical market for this aromatic rice, with Iran representing approximately 35 percent of total shipments.
Previously, around 100,000 tonnes of Basmati rice were held up at Indian ports due to a 12-day conflict between Israel and Iran, which prevented ships from accessing the affected zone.
Most of these shipments were stranded at the Kandla and Mundra ports located along the Gujarat coast.
India’s rice exports to Gulf nations navigate the Strait of Hormuz, and with the war clouds dissipating, the route is now clear for ships to resume operations.
This positive development is also mirrored in the Indian stock markets, where shares of rice exporters such as LT Foods, KRBL, and Chaman Lal Setia Exports—whose values had plummeted during the conflict—have bounced back following the announcement of the ceasefire by U.S. President Donald Trump.
Indian rice exports (both Basmati and non-Basmati) target countries like Saudi Arabia, Iran, Iraq, Yemen, Jordan, Qatar, and Oman in the Gulf region.
Approximately 80 percent of India’s Basmati rice is exported to the Gulf, with 35 percent of it destined for Iran, as reported by industry sources.
In the fiscal year 2024-25, India’s Basmati rice exports to Iran soared to $753 million, a rise from $681 million in 2023-24, according to data from the Commerce Ministry.
India’s rice imports increased in 2024-25 due to enhanced farm yields attributed to a favorable monsoon.
The erratic monsoon in 2023-24 had negatively affected the agricultural sector, leading to significant food inflation.
Consequently, the Indian government imposed restrictions on rice exports to boost domestic availability and mitigate rising prices that threatened stability.
Point of View
I believe this development underscores the resilience of India's agricultural sector amidst geopolitical tensions. The resumption of Basmati rice exports not only stabilizes the market but also reflects India's strategic importance in global trade. It's crucial to monitor how these dynamics will evolve in the coming months.
NationPress
25/06/2025
Frequently Asked Questions
What percentage of India's Basmati rice is exported to Iran?
Approximately 35 percent of India's Basmati rice is exported to Iran.
How much Basmati rice was stuck at Indian ports due to the conflict?
Around 100,000 tonnes of Basmati rice were stranded at Indian ports due to the Israel-Iran conflict.
What impact did the ceasefire have on rice exporters' stocks?
Following the ceasefire announcement, shares of Indian rice exporters like LT Foods and KRBL saw a recovery after a significant drop during the conflict.
Which regions does India export rice to?
India exports rice to several Gulf countries, including Saudi Arabia, Iran, Iraq, Yemen, Jordan, Qatar, and Oman.
Why did India impose restrictions on rice exports?
The Indian government imposed restrictions on rice exports to improve domestic availability and control rising prices due to food inflation.
