New Delhi, June 20: The ongoing conflict between Israel and Iran has had a significant impact on India’s rice exports, with shipments to Iran coming to a near halt, rice exporters said on Friday.

Speaking to IANS, rice exporter Narendra Miglani said: "The war between Iran and Israel is affecting Indian rice exporters."

"Due to the conflict, exports of rice routed to Iran have stopped, and nearly 1 lakh metric tonnes of rice from Haryana, Punjab, Delhi, and Uttar Pradesh are currently stuck at ports," he added.

Miglani said that India exports the highest quantity of basmati rice to Iran, followed by Saudi Arabia and Iraq.

He further added that the conflict has caused a drop of nearly Rs 1,200 per quintal in export rice prices.

Exporters are particularly concerned about payments stuck in Iran and rice containers stranded at port terminals.

As rice shipments to Iran are not insured, exporters now fear heavy losses if the rice goes bad.

Adding to the pressure, Miglani pointed out that export permits for Iran are valid for only four months.

If the rice fails to reach Iran within this timeframe, the permits are cancelled, resulting in further losses for exporters.

A recent report by Crisil noted that India’s direct trade with Israel and Iran accounts for less than one per cent of its total trade.

While Iran mainly imports basmati rice from India, trade with Israel is more diversified, covering fertilisers, diamonds, and electrical equipment.

According to the report, Iran and Israel together account for nearly 14 per cent of India’s basmati rice exports in the current financial year (FY25).

However, the report warned that a prolonged escalation could worsen the situation, primarily by pushing up oil prices and disrupting supply chains, which may lead to higher inflation. (IANS)

Read More Business News

Argus News | argus news | Odisha Latest News, Breaking News, Trending News, Live TV