With the escalation of Iran-Israel conflict, rice exporters in Haryana -- which accounts for 30 per cent of the country's basmati rice shipments to Iran -- are struggling with major disruptions in ship movements and payment delays.
While Karnal is the main hub of basmati exports, Kaithal and Sonipat too contribute to the foreign demand.
"The ongoing Iran-Israel conflict has impacted the trade," said Sushil Jain, Rice Exporters Association's state unit president.
"Nearly 10 lakh metric tonnes of Basmati rice is exported from the country to Iran, of which Haryana's share is about 30-35 per cent," he said, adding that shipments of about 1 lakh metric tonnes of basmati rice for Iran are stuck at ports.
Besides, the payments amounting to ₹1,500 crore to ₹2,000 crore for nearly 2 lakh MT of the rice exported to Iran by Indian exporters has also got stuck due to the conflict, Jain said.
The escalation in the conflict is going to impact the Indian market which is already witnessing some fall in the prices, he said.
"Another issue which the exporters are facing is the lack of insurance cover for the vessels during war which increases the risk for us," he added.
Iran is India's second-largest basmati rice market after Saudi Arabia. India exported around 1 million tonnes of the aromatic grain to Iran during the 2024-25 fiscal year.
India exported approximately 6 million tonnes of basmati rice during 2024-25, with demand primarily driven by the Middle East and West Asian markets. Other major buyers include Iraq, the United Arab Emirates and the United States.
The Israel-Iran conflict has escalated significantly in recent weeks, with both sides exchanging heavy strikes and the US becoming directly involved in the hostilities.
The shipping disruption adds to challenges facing Indian rice exporters, who have previously dealt with payment delays and currency issues in the Iranian market due to international sanctions.
On Sunday, Prime Minister Narendra Modi conveyed to Iranian President Masoud Pezeshkian India's "deep concern" over Iran's conflict with Israel and called for immediate de-escalation of the situation through "dialogue and diplomacy".
The phone conversation initiated by Pezeshkian came hours after the US bombed three major nuclear sites -- Fordow, Natanz and Isfahan -- in Iran.