New Delhi: India’s basmati rice exports to Iran are likely to be affected because of rising tensions between the US and the Islamic Republic, with domestic trade body All India Rice Exporters Association (AIREA) asking its members not to undertake any shipment till the situation improves.
Iran is an important export destination for India and if shipments get affected then it will impact domestic prices and in turn farmers’ income, the AIREA said.
During the last fiscal, India exported basmati rice worth Rs 32,800 crore, of which nearly Rs 10,800 crore worth rice was shipped to Iran.
“In the current situation, it is not possible to export basmati rice to Iran. We have issued an advisory to our members to be cautious and not to execute further shipments till the situation gets clearer,” AIREA president Nathi Ram Gupta said Sunday.
“Basmati rice exports to Iran were hit last year as well following US sanctions on the country. About Rs 900 crore payments are still pending from basmati rice exported till June 2019,” Gupta informed.
Non-export of basmati rice to Iran will lead to surplus stock in the country, pulling down the rates and affecting the farmers, Gupta added.
Normally, basmati rice exports start from November onwards when the fresh crop arrives. So far, not much has been exported, he said.
In its advisory, AIREA said: “In view of growing uncertainty, exporter members should take extreme caution not to execute any further shipment to Iran till the situation gets clearer. If exporters choose to ship basmati rice to Iran, they will do so entirely at their risk.”
PTI