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India is actively seeking new markets for its basmati rice as political unrest and economic instability in Iran disrupt shipments and delay payments.

The Indian Rice Exporters Federation (IREF) disclosed this development on its official website, citing fears of stalled consignments and payment defaults.

The move comes amid weeks of nationwide unrest in Iran over economic hardships, soaring inflation, and restrictions on freedoms, which have hit trade channels with India.

Indian exporters are now looking to offset risks by targeting alternative markets, including Africa, West Asia, and Europe, to maintain steady revenue streams from the world’s largest rice surplus.

What they are saying 

IREF said that the current situation in Iran has created uncertainty across trade channels, significantly affecting India’s basmati rice exports. Exporters are now cautious due to payment delays and reduced purchasing power in Iran.

Exporters report that consignments worth over ₹1,500 crore ($167 million) are stalled at Iranian ports, with delayed payments caused by the depreciating Iranian rial and inflation.

US-imposed tariffs on trade with Iran have further undermined imports, exacerbating payment delays.

The political unrest in Iran is a cause for concern and is affecting India’s Basmati rice exports to the country.

“Indian Basmati rice exporters are hesitant to send shipments to Iran due to fears of payment defaults and significant losses. Iran was once the largest buyer of Indian Basmati rice, but it has now slipped to third place,” the publication read in part. 

Indian Basmati rice exporters are hesitant to send shipments to Iran due to fears of payment defaults and significant losses.

India is actively seeking new markets to mitigate these risks, leveraging its position as the world’s largest rice producer and exporter.

It added, “India is currently the world’s largest rice exporter and also the largest rice producer. India has a strong surplus of rice and is actively seeking new markets for its rice trade.” 

The federation emphasizes that while Iran was once India’s largest basmati rice buyer, it has now fallen to third place, prompting the search for new international buyers.

What this means 

India’s shift from Iran to alternative export markets opens significant opportunities for Africa, particularly Nigeria, which is one of the continent’s largest rice importers.

• Rice is one of the four major staples consumed across Africa, alongside cassava, maize, and wheat, making the continent highly reliant on imports.

• Africa imports more than 35 million tonnes of rice annually, presenting a great and growing demand for Indian rice. Indian exporters could fill the supply gap in African countries affected by volatility in other trade partners.

Expanding into Africa, and specifically Nigeria, allows India to reduce risks associated with political and economic instability in single markets like Iran.

This development indicates that India may increasingly target African nations to stabilize its rice export revenue while supporting the continent’s food needs.

What you should know 

India’s basmati rice exports to Iran have already been significantly affected, with volumes and revenue declining over the past few years due to political and economic instability in the country.

Between April and November 2025–26, India exported 5.99 lakh metric tons of basmati rice to Iran, generating ₹6,374 crore ($708 million) in revenue, down from 1.48 million metric tons in 2018–19.

• Exporters report that consignments worth over ₹1,500 crore ($167 million) are currently stalled at Iranian ports, while payment delays have increased due to the depreciating Iranian rial and soaring inflation.
• US-imposed tariffs on trade with Iran, announced earlier in January, add further pressure on Iran’s import capacity.
• Africa imports over 35 million tonnes of rice annually, with Nigeria accounting for a significant share, highlighting its importance as a potential alternative market for India’s surplus.

These facts highlight the urgency for India to diversify its basmati rice exports and the potential for African markets to absorb part of the surplus left by reduced shipments to Iran.

Source : nairametrics