Iran Among Top 2 Basmati Buyers as India Ships 6.8 Lakh MT in Apr–Dec 2025
03 March 2026, New Delhi: India exported 6,81,436 metric tonnes of basmati rice to Iran during April–December 2025, reinforcing Iran’s position as one of the top two buyers of Indian basmati. The development comes at a time when rising geopolitical tensions in the Gulf region are creating uncertainty around freight, insurance and oil prices—factors that directly influence India’s premium rice export trade.
Against this backdrop, the Indian Rice Exporters Federation (IREF) issued an advisory on March 1, 2026, urging exporters to exercise caution amid the deteriorating situation in the Islamic Republic of Iran and parts of the Gulf. Reports suggesting potential restrictions on shipping movements through the Strait of Hormuz have added to trade concerns.
The Federation has advised exporters not to undertake new CIF (Cost, Insurance and Freight) commitments for affected destinations. Instead, sales should preferably be concluded on FOB (Free on Board) terms, ensuring that freight, insurance and logistics-related risks remain with overseas buyers.
According to IREF, developments in Iran and the United Arab Emirates could immediately impact bunker fuel prices. A surge in crude oil prices may disrupt container and bulk vessel availability, triggering sharp increases in freight rates and marine insurance premiums. Exporters have also been cautioned against entering open-ended, unhedged contracts.
Export Data Highlights Strong Middle East Dependence
India’s rice exports to the Middle East and Africa together account for roughly half of total national rice exports, underlining the region’s strategic importance.
Basmati Exports (Apr–Dec 2025)
| Region | Qty (MT) | Amt (INR Cr) | Avg Rate (INR/MT) | USD (M) | Avg Rate (USD/MT) |
|---|---|---|---|---|---|
| Middle East | 32,05,925.00 | 23,771.39 | 74,148.29 | 2,724.81 | 849.93 |
| Africa | 3,21,324.00 | 2,375.35 | 73,923.87 | 271.22 | 844.07 |
The Middle East remains the dominant basmati market in both volume and value terms.
Non-Basmati Exports (Apr–Dec 2025)
| Region | Qty (MT) | Amt (INR Cr) | Avg Rate (INR/MT) | USD (M) | Avg Rate (USD/MT) |
|---|---|---|---|---|---|
| Middle East | 6,94,740.00 | 3,425.38 | 49,304.49 | 391.18 | 563.06 |
| Africa | 68,34,005.00 | 22,490.63 | 32,909.88 | 2,575.56 | 376.87 |
Africa dominates non-basmati exports in terms of quantity, while average realizations remain higher in Middle Eastern markets.
Grand Total Rice Exports (Apr–Dec 2025)
| Region | Qty (MT) | Amt (INR Cr) | Avg Rate (INR/MT) | USD (M) | Avg Rate (USD/MT) |
|---|---|---|---|---|---|
| Middle East | 39,00,665.00 | 27,196.77 | 69,723.41 | 3,115.99 | 798.84 |
| Africa | 71,55,329.00 | 24,865.98 | 34,751.69 | 2,846.78 | 397.85 |
While Africa leads in overall shipment volumes, the Middle East generates higher per-ton export earnings.
Top 5 Basmati Destinations (Apr–Dec 2025)
| Country | Qty (MT) | Amt (INR Cr) | Avg Rate (INR/MT) | USD (M) | Avg Rate (USD/MT) |
|---|---|---|---|---|---|
| Saudi Arabia | 7,66,382.00 | 5,992.30 | 78,189.45 | 687.26 | 896.75 |
| Iran | 6,81,436.00 | 4,639.17 | 68,079.38 | 533.51 | 782.92 |
| Iraq | 5,69,374.00 | 4,147.92 | 72,850.62 | 476.15 | 836.26 |
| UAE | 3,18,655.00 | 2,406.34 | 75,515.37 | 274.85 | 862.52 |
| Yemen | 3,00,032.00 | 2,153.46 | 71,774.28 | 245.43 | 818.00 |
Iran’s 6.81 lakh MT shipments place it among the top two basmati buyers globally, alongside Saudi Arabia. Together with Iraq, UAE and Yemen, the top five Middle East markets account for nearly 50% of India’s total basmati exports.
With wholesale basmati prices already up 10–15% over the past month and Iran being a key market, price volatility is expected to intensify if freight disruptions materialize.
IREF stated that it is closely monitoring the evolving situation and remains in contact with exporters whose consignments are in transit or awaiting clearance. Further advisories will be issued depending on geopolitical and shipping developments.
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