### Civil Unrest and Tariff Threats Disrupt India's Basmati Rice Exports to Iran India's basmati rice exports to Iran, a crucial market accounting for nearly two-thirds of Iran's rice imports, are facing significant disruptions due to ongoing civil unrest in Iran and the looming threat of a 25% tariff imposed by the United States on countries trading with Iran. The Indian Rice Exporters Federation (IREF) has reported that these factors have led to a near standstill in exports, causing domestic prices to plummet and creating payment delays for exporters. The situation has prompted calls for exporters to reassess their risks and adopt more secure payment mechanisms to mitigate potential losses. ### Breakdown of the Current Situation 1. **Impact of Civil Unrest in Iran** - Civil unrest has led to a sharp decline in Indian basmati rice exports, with exporters facing payment delays and uncertainties regarding contracts with Iranian buyers [https://www.marketscreener.com/news/protests-and-tariff-worries-stall-india-s-rice-exports-to-iran-ce7e58d8da8bff2c]. - The Indian Rice Exporters Federation has urged exporters to limit their exposure to the Iranian market and consider diversifying their contracts [https://www.rediff.com/business/report/iran-unrest-hits-indian-basmati-rice-exports/20260113.htm]. 2. **US Tariff Threats Compounding Challenges** - The US has threatened a 25% tariff on goods from countries trading with Iran, which has further complicated the situation for Indian exporters [https://www.cnbctv18.com/market/lt-foods-krbl-shares-donald-trump-threatens-25-percent-tariff-on-countries-trading-with-iran-basmati-stocks-in-focus-19819613.htm]. - This tariff is expected to increase risks for exporters already grappling with delayed payments and rising logistics costs [https://www.cnbctv18.com/market/commodities/indian-rice-exporters-face-headwinds-from-us-tariffs-on-iran-says-rajesh-paharia-alpha-article-19819959.htm]. 3. **Economic Consequences and Industry Response** - The turmoil has resulted in a significant drop in domestic prices for basmati rice, with key varieties seeing price reductions of up to ₹5-7 per kg within a week [https://www.businesstoday.in/latest/economy/story/indias-basmati-rice-exports-to-iran-nears-standstill-after-trumps-25-tariff-threat-report-510833-2026-01-14]. - Exporters are currently facing over ₹2,000 crore in delayed payments, with large stockpiles accumulating at ports due to disrupted trade flows [https://www.businesstoday.in/bt-tv/market-today/video/iran-crisis-hits-rice-prices-rs2000-crore-of-indian-export-payments-at-risk-510739-2026-01-13]. ### Supporting Data and Evidence - **Export Figures**: India exported approximately $468.10 million worth of basmati rice to Iran during the April-November 2025-26 fiscal year, totaling around 5.99 lakh tonnes [https://www.outlookbusiness.com/news/iran-unrest-hits-indian-basmati-rice-exports-prices-fall-sharply-as-payment-delays-mount-industry-body]. - **Price Trends**: The price of the 1121 variety of basmati rice has dropped from ₹85/kg to ₹80/kg, while other varieties have seen similar declines [https://www.freepressjournal.in/business/civil-unrest-in-iran-hits-indias-basmati-rice-exports-causes-sharp-domestic-price-drop-payment-delays]. - **Payment Delays**: Exporters are currently facing significant payment delays, with estimates suggesting that over ₹2,000 crore worth of payments are at risk due to the unrest in Iran [https://www.businesstoday.in/bt-tv/market-today/video/iran-crisis-hits-rice-prices-rs2000-crore-of-indian-export-payments-at-risk-510739-2026-01-13]. ### Conclusion: A Critical Juncture for Indian Rice Exports In summary, the combination of civil unrest in Iran and the potential for US tariffs has created a precarious situation for Indian basmati rice exporters. The following points summarize the key findings: 1. **Civil unrest in Iran is severely disrupting Indian rice exports**, leading to payment delays and a sharp decline in domestic prices [https://www.rediff.com/business/report/iran-unrest-hits-indian-basmati-rice-exports/20260113.htm]. 2. **The US tariff threat adds another layer of complexity**, increasing risks for exporters already facing logistical and financial challenges [https://www.cnbctv18.com/market/lt-foods-krbl-shares-donald-trump-threatens-25-percent-tariff-on-countries-trading-with-iran-basmati-stocks-in-focus-19819613.htm]. 3. **Industry bodies are urging exporters to reassess their strategies**, adopt secure payment mechanisms, and consider diversifying their markets to mitigate risks [https://www.devdiscourse.com/article/business/3767777-turmoil-in-iran-hits-indias-basmati-rice-trade]. The future of India's basmati rice exports to Iran hangs in the balance, and proactive measures will be essential to navigate this challenging landscape.