West Asia conflict: Iran stepped up basmati imports under war cloud

Amid reports of tonnes of basmati rice stranded at Indian ports because of the ongoing West Asia crisis, data indicates that Iran, at the centre of the conflict and one of the largest buyers of Indian basmati, appears to be on a stocking spree for the staple grain.

 

The rise in shipments to Iran may also be linked to demand during Ramzan, which began in mid-February.

 

Indian exports of aromatic basmati rice to Iran totalled about 1.04 million tonnes (mt) in the 2025 calendar year (January–December), nearly 27.2 per cent higher than in 2024.

 

Data shows that in January and February 2026, Iran purch­ased around 238,775 tonnes of basmati rice from India, almost 23 per cent more than in the same period a year ago. This marked the highest level of basmati exports for these two mon­ths since 2023. The consi­­gn- ments were bought at an average price of about $800-$810 per tonne. In Janua­ry 2026 alone, Iran imported ro­u­ghly 118,623 tonnes of basmati rice from Ind­ia, nearly 70 per cent more than in January 2025.  

 

In FY24, India exported close to 0.79 mt of basmati rice to Iran, rising to 0.96 mt in FY25. In FY26, through February, covering 11 months, exports have already reached about 0.98 mt, with one month remaining in the financial year.

 

According to Indian traders and market participants, Iran has stepped up purchases of Indian basmati rice in recent months, probably driven by Ramzan demand and in anticipation of a prolonged conflict involving Israel and the United States

 

Iran is among the largest buyers of Indian basmati, accounting for roughly 0.7-1.0 mt annually out of India’s total exports of about 6-6.5 mt. 

 

Traders said that, apart from maintaining comfortable stocks of basmati rice, Iran has also been expanding the area under domestic rice cultivation using dam water.

 

More than the export volumes, some traders expressed concern that a prolonged conflict in West Asia could disrupt payment cycles and strain liquidity.

 

Overall, several traders said that more than 83 per cent of the 6.5 mt basmati export target has already been achieved in the first 10 months of FY26.

 

Meanwhile, reports suggest freight charges for commodities shipped from India to Gulf nations have risen by nearly $200 per tonne amid the West Asia conflict and higher risk premiums.

 

Traders noted that food security in West Asian countries at the epicentre of the conflict, including the UAE, Saudi Arabia, Qatar and Kuwait, does not currently appear to be under strain in terms of cereals and essential staples.

 

However, a crisis could emerge if the conflict extends beyond 10 days, particularly in perishable categories such as green vegetables and fruit, on which Gulf countries are heavily reliant on imports. “There is no problem when it comes to supplies of onions, potatoes and green peas, but if the crisis prolongs beyond 10 days there could be shortages of perishable food items and processed products such as juices and fruit in Gulf countries, where demand is typically high during Ramzan,” a leading trade expert said.