New Delhi [India], August 26 (ANI): Indian rice exports to the Middle East have remained resilient despite the economic crisis in Iran, with exporters saying trade with the country is likely to continue uninterrupted as shipments are increasingly routed through alternative destinations amid US sanctions.
Iran purchased more than 1 million tonnes of rice from India in the last financial year, an increase of 17 per cent from a year earlier, according to government data. Exporters said the rise underlines the importance of the Iranian market and reflects the ability of Indian suppliers to keep shipments and payments moving despite geopolitical and logistical challenges.
Speaking to ANI, Dev Garg, Vice President of the Indian Rice Exporters Federation (IREF), said Iran remains the second-largest market for Indian basmati rice globally and imports around 1 million tonnes of rice from India annually.
"The exports to the Middle East have risen despite the economic crisis in Iran. We have seen that Iran is the second largest market for Indian basmati rice in the world. Iran is roughly importing about 1 million tons of rice every year from India," Garg said.
He said that during April-June in previous years, Iran imported around Rs 10,000 crore worth of basmati rice, equivalent to nearly 350,000 metric tonnes. However, exports to Iran during April-June 2026 declined 64 per cent compared with the corresponding period in 2025, with shipments falling by around 185,000 metric tonnes and export value declining by nearly Rs 1,049 crore.
Despite the sharp fall in direct shipments to Iran, exports to the wider Middle East grew by 3 per cent, or approximately Rs 750 crore, Garg said.
"This clearly shows that though the sanctions might be in place, rice is a commodity which is majorly exempt from sanctions on humanitarian grounds. But things like shipping, insurance and other logistical challenges pose a major threat to direct trade with Iran," he said.
Garg said exporters have responded by using alternative routes and destinations to maintain supplies to the Iranian market. Shipments to Jordan increased nearly eight-fold, or 800 per cent, while basmati rice exports to Turkey doubled.
"This clearly shows that the goods to Iran are being rerouted through alternative routes and the total export pie to the Iranian market or to the Middle Eastern market has remained consistent," he said.
According to Garg, the overall decline in basmati rice volumes was relatively limited at around 50,000 metric tonnes, even as export value increased by 3 per cent.
He said the divergence between volumes and value indicates higher logistics costs and risks, with supply-chain stakeholders seeking higher margins to compensate for increased input and transportation costs.
"Even after a marginal fall in quantity, the total exports have risen. This is a very big indicator that the overall Indian ecosystem has remained largely resilient to any supply shock to the Iranian market," Garg said.
The comments come as US President Donald Trump's administration on Monday unveiled sanctions against more than 60 entities and warned countries and businesses dealing with Iran of economic consequences.
Exporters, however, expect rice trade to remain largely insulated because of the staple's humanitarian importance and limited alternative sources of supply. Rice is a key component of the Iranian diet, while the humanitarian nature of the commodity provides an important basis for continued trade.
Garg said Iran accounts for around 15 per cent of India's basmati rice exports, while the Middle East collectively accounts for nearly 70 per cent of India's rice exports globally.
"Despite the US sanctions, the exports to Iran have grown and despite the war our total exports have remained consistent," Garg said. (ANI)
Iran rice trade to continue despite US sanctions, Indian exporters rely on alternate routes: IREF
