New Delhi, June 22 The ongoing conflict between Iran and Israel is starting to take a serious toll on India’s basmati rice trade, with exporters on Sunday warning of a looming payment crisis and sharp price drops if the situation does not improve soon.
All India Rice Exporters Association President Satish Goyal said that over 1 lakh tonnes of basmati rice meant for Iran is currently stuck at Indian ports.
"Iran is a very important market for us. Around 18 to 20 per cent of India’s total rice exports go to Iran. Every year, we export nearly 1 million tonnes of basmati rice to them," Goyal told IANS, expressing deep concern over the disruptions.
He added that while there hasn’t yet been a complete halt in trade, delays in shipments and uncertainty around payments could cause severe financial stress.
"If this conflict continues, the local market will start facing a cash crunch. Prices have already dropped by Rs 4 to Rs 5 per kilogram, and if the situation worsens, this decline could deepen," he told IANS.
One major challenge exporters are now facing is the lack of insurance coverage during war.
"No insurance company covers war-risk for vessels entering conflict zones. That means if something happens during transport, exporters bear the full loss," Goyal noted.
He also pointed out that the situation worsened after the United States entered the conflict. "Until last night, we hoped things would calm down, but now it doesn't seem likely. The entry of the US has made the situation even more uncertain," he added.
Haryana's Karnal, a key hub for basmati rice exports, accounts for nearly 25 to 30 per cent of India’s total export volume in this segment.
"Exporters from this region have been trading with Iran for the past 15 to 20 years without facing such disruptions," Goyal said.
He added that a meeting with Union Commerce and Industry Minister Piyush Goyal is scheduled for June 24 to discuss the crisis.
"We’ve already had some conversations with the government, and we are hoping for support to navigate this difficult phase," he said.
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