India is Iran's largest rice supplier, with the staple accounting for nearly two-thirds of all Iranian imports from the country.
The US sanctions on Iran were seen as veiled attack on Indian business.
However, amid present developments, Indian rice exporters have sought Union Commerce Ministry’s help to clear payments.
Iran is India’s most significant destinations for basmati rice. But the current financial year has seen growing stress on order flows and issues such as payment cycles.
Rice exporters say the Govt should 'help to clear pending dues' from importers in Iran amid growing civil unrest in that country.
The IREF delegation met senior Commerce Ministry officials in Delhi and apprised them of the situation.
The immediate fallout of the situation in Iran is evident in Indian markets too, where basmati prices have softened sharply within days.
India’s total trade with Iran stood at $1.6 billion last year, a small fraction of Iran’s overall import basket, which was estimated at around $68 billion in 2024.
“Exporters must exercise heightened caution, particularly with respect to credit exposure and shipment timelines,” the IREF’s statement said.
India exported 5.99 lakh tonnes of basmati rice worth $468.10 million to Iran during April-November of the 2025-26 financial year.
“Iran has historically been a pillar market for Indian basmati. However, the current internal turmoil has disrupted trade channels, slowed payments and dented buyer confidence,” the IREF’s national president Prem Garg said in the statement.
Importers have conveyed their inability to honour existing commitments and remit payments to India, creating uncertainty for exporters.
Iran’s major import partners include --
the European Union at $6 billion (9 per cent),
the UAE at $21 billion (30 per cent),
China at $17 billion (26 per cent) and
Turkiye at $11 billion (16 per cent).
US President Donald Trump has said that any country trading with Iran would face a 25% tariff on its commerce with the US, a move exporters say has made Indian suppliers even more reluctant to sign new contracts with Iranian buyers, international news agency Reuters reported.
India is the world's largest rice exporter, dominating global trade in both Basmati and Non-Basmati varieties, driven by high production, competitive pricing, and strong quality reputation.
Major Indian markets are in the Middle East, Africa, and Asia, anticipating record exports in 2025-26 and aiming for 30 million tonnes by 2027 despite past restrictions.
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