Basmati Prices
Basmati prices slide as Iran unrest hits trade, says rice exporters body
This story was originally published at 12:51 IST on 13 January 2026
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NEW DELHI – Basmati rice prices have fallen sharply in domestic markets over the past week as escalating civil unrest in Iran has disrupted trade, delayed payments, and heightened risk perception among Indian exporters, the Indian Rice Exporters' Federation said. Referring to US President Donald Trump's recent remarks of a 25% tariff on countries trading with Iran, the federation noted that Indian rice exports to the US already face 50% duty.
Over the past week, prices of most key basmati varieties fell by INR 5 per kilogram. The current rates of 1121 basmati are INR 80 per kg and 1121 Sella INR 75 a kg. Prices of varieties such as 1509, 1718, and 1401 declined by INR 5-INR 7 per kg from a week ago, the federation said in a release. Prices could fall further in the coming weeks amid persisting uncertainties.
Amid declining prices, the federation has asked exporters to diversify into West Asia, Africa, and Europe to cushion the impact of any prolonged slowdown in Iran-bound shipments. "We are not sounding an alarm, but urging prudence...A calibrated approach is essential to protect both exporters and farmers," Dev Garg, vice president of the federation, said.
"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," Garg added. During Apr-Nov, India's basmati exports to Iran stood at $468.10 million, with volumes reaching 598,793 tonnes, the federation said.
It urged exporters to reassess risks associated with Iranian contracts, adopt secure payment mechanisms, and avoid over-leveraging inventories meant exclusively for the Iranian market.
The trade body said importers have indicated difficulties in honouring existing commitments and remitting funds to India. "While similar crises have occurred in the past, the trajectory of the current situation remains unclear and is expected to cause further disturbances in prices, liquidity, and trade sentiment in the weeks ahead," the release said.
On Trump's remarks on punitive tariffs over trade relations with Tehran, the federation said, "At present, there is limited clarity on whether the proposed 25% tariff would be levied over and above the existing 50% duty or applied differently. Even if the tariff burden were to rise further, the federation does not foresee a significant decline in Indian rice exports to the US market." The US remains among the top 10 markets for Indian rice, and the fourth largest destination for Indian Basmati.
Trump has imposed 25% tariff on any and all countries trading with Iran, effective immediately. "This Order is final and conclusive. Thank you for your attention to this matter!" Trump wrote on his social media platform Truth Social on Tuesday. Iran's major trading partners include China, Turkey, the United Arab Emirates, Iraq, and India, and the move could further steepen the already high tariffs on Indian goods to the US.
Trump's announcement comes as retaliation to Tehran's severe crackdown on protestors in the country, hundreds of whom have been killed. End
US$1 = INR 90.26
Reported by Afra Abubacker
Edited by Avishek Dutta
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