Iran-Israel War Disrupts Indian Rice Exports: Farmers and Traders Face Massive Losses

The ongoing conflict between Iran and Israel is now taking a toll on India, especially its farmers and rice exporters. India, a major exporter of Basmati rice to the Middle East, is witnessing a sharp decline in shipments due to the war, leaving thousands of traders and farmers in distress.

.

.

.

Shipments Stuck, Prices Crash

Basmati rice, a staple in Indian exports to Iran, is now stuck at ports and on ships, unable to reach its destination. Exporters report that since the war began, shipments have been halted mid-route, causing significant financial losses.

Sachin Sharma, a major exporter, explains, “Before the war, we were selling rice at ₹71 per kilo. In just four days of conflict, the price has crashed to ₹59 per kilo—a loss of ₹12 per kilo. This is a market crash. For exporters dealing in bulk, it’s a massive blow.”

Many exporters had already purchased large stocks of paddy at higher prices, expecting stable returns. Now, with the market value dropping, both traders and farmers are facing severe losses.

Ripple Effect on Farmers

The impact isn’t limited to exporters. Farmers, who sold their paddy at higher rates, are now being forced to accept lower prices. Rajendra Prasad Singla, another exporter, highlighted that not only Iran, but exports to Iraq and other Gulf countries are also affected, as most shipments pass through the same conflict zone.

“Everything is stuck—rice at ports, loaded on ships, and in our warehouses. It’s nearly impossible to recall shipments that have already cleared customs. If the war continues, the losses will only deepen,” he said.

A Chain Reaction Across the Economy

The disruption is expected to have a long-term impact. Vinod Kumar Singh, a rice mill owner, noted, “If this war drags on, prices will fall further. Haryana and Punjab millers have huge stocks that are now unsellable. The entire trade cycle is paralyzed.”

The war has also caused a sharp drop in paddy prices for farmers, with rates falling by up to ₹600 per quintal. Payments are delayed, shipments are halted, and the entire market is under immense pressure.

No Easy Solution

Exporters say that finding alternative markets to absorb the massive volume of rice meant for Iran and the Middle East is nearly impossible in the short term. Iran alone accounts for 25% of India’s Basmati exports, worth nearly ₹6,500 crore annually.

Insurance is another issue—shipments to war zones are not covered, and shipping companies refuse to operate in these areas, regardless of the price offered.

Plea for Government Intervention

With the new crop season approaching, exporters and farmers are urging the Indian government to step in. They hope for relief in the form of tax breaks, interest waivers, or other incentives to offset the losses.

“The government must support the industry; otherwise, the entire chain—from farmers to millers to exporters—will suffer,” said Virendra, a local trader.

The Bigger Picture

The Iran-Israel war is a stark reminder of how global conflicts can have far-reaching effects, disrupting economies and livelihoods thousands of miles away. For Indian farmers and businesses, the hope now rests on swift government action and an early end to the conflict.

As the war rages on, the anxiety among India’s agricultural community only grows, with the fate of thousands hanging in the balance.