Basmati rice prices may be reduced in India: Iran will be reduced to export due to the war with Israel, bought ₹ 6,374 crore rice in 2024-25.

After Saudi Arabia and Iraq, Iran is the third largest buyer of Indian basmati rice.

Basmati rice prices in India may be reduced due to tension between Israel and Iran. In the coming weeks, due to the war with Israel, Iran can reduce the import of basmati rice from India. Basmati rice prices in the country saw a growth of 15-20% due to high exports in the last two months.

According to Agriculture and Processed Foods Export Development Agency i.e. APEDA, Iran is the third largest buyer of Indian basmati rice after Saudi Arabia and Iraq. During 2024-25, India exported basmati rice worth ₹ 6,374 crore to Iran, which was 12.6% of India’s Total Basmati Export for that period.

Indian Basmati rice prices had increased their purchase by major importers in West Asia and Iran after falling to Rs 75-90 per kg. After this, the prices of basmati rice in the country increased.

Prices improve due to transmission related problems

According to the ET report, Basmati rice exporter Rajesh Jain Pahadia said, ‘Export price has come down from $ 1000 (Rs 85,988) per tonne to $ 900 (Rs 77,390) per tonne. Prices have improved due to transmission related problems.

Indian basmati rice prices were at the bottom in April

Basmati rice exporter and domestic trader in Maharashtra, Dhawal Shah said, “Indian basmati rice prices reached their lower level in April, as many factors were then low global export demand.

However, there was a growth in export demand after this, as everyone wanted to stock basmati rice at low prices. Due to this, there was a rise in export in May and prices also saw a growth of about 15-20%.

Right now basmati rice prices likely to remain stable

Dhawal Shah said, ‘Basmati rice prices are likely to remain stable right now, but factors such as Trump Effects and War Increase will decide the direction of prices in future. The countries make more purchases to ensure their food security on indications of increasing war.

National President of the Indian Rice Export Federation Prem Garg has expressed concern over the issues of current maritime shipment and pending payment. The trade estimate shows that the outstanding amount for Basmati trade with Iran is typically Rs 1,000-1,200 crore. In our business with Iran, we take 20% advance payment and everything else is on a credit of 180 days.