India’s basmati rice exports to Iran almost stalled after Trump’s threat of 25% tariffs: report
Exports of basmati rice from India to Iran have slowed to a halt, according to a report. This comes after US President Donald Trump’s threat of 25 percent tariffs on Tehran’s trading partners stoked fears among rice exporters.
This is an obvious hurdle for exporters, as Indian goods already face 50 percent tariffs from Washington. According to a Reuters report, suppliers are now wary of new transactions due to the risk of non-payment and possible additional tariffs. Indian suppliers are now reluctant to sign new contracts with Iranian buyers.
India is Iran’s largest rice supplier, accounting for nearly two-thirds of all Iranian imports from the country.
An exporter told the news agency he was concerned about payments for shipments from the past two months, as some buyers reported not having received the full quantity and some even fled the country due to the ongoing protests.
Dev Garg, vice-president of the Indian Rice Exporters Federation (IREF), said in a statement that importers have expressed inability to honor their existing commitments and make their payments to India, citing the unrest in Iran.
India’s trade with Iran fell to $1.68 billion in 2024-25, including $1.24 billion in exports and $440 million in imports, representing a significant decline from international trade of $17.03 billion in 2018-19.
India exports basmati rice, tea, sugar, fresh fruits and medicines to Iran, while importing apples, pistachios, dates and kiwis.
Meanwhile, the death toll from nationwide protests in Iran has risen to more than 2,000, according to activists.
