India’s basmati rice exports to Iran nears standstill after Trump’s 25% tariff threat: Report
Iran turmoil: India is Iran’s largest rice supplier, accounting for nearly two-thirds of all Iranian imports from the country.
- Jan 14, 2026,
- Updated Jan 14, 2026 12:13 PM IST
India’s basmati rice exports to Iran have slowed down to a near standstill, says a report. This comes after US President Donald Trump’s 25 per cent tariff threat on Tehran’s trading partners stoked fears among rice exporters.
This is an obvious hindrance for exporters as Indian goods are already facing a tariff of 50 per cent from Washington. As per a report in Reuters, suppliers are now wary of new deals due to the risk of non-payment and potential additional tariffs. Indian suppliers are now reluctant to sign new contracts with Iranian buyers.
India is Iran’s largest rice supplier, accounting for nearly two-thirds of all Iranian imports from the country.
An exporter told the news agency that they are worried about the payments for the shipments in the last two months as some of the buyers reported not receiving the full quantity and some have even fled the country because of the ongoing protests.
Dev Garg, vice president of the Indian Rice Exporters Federation (IREF), said in a statement that importers have conveyed their inability to honour existing commitments and remit payments to India citing the turmoil in Iran.
India’s trade with Iran fell to $1.68 billion in 2024-25, out of which $1.24 billion amounted to exports and $440 million imports, which is a significant drop from the nations’ trade of $17.03 billion in 2018-19.
India exports basmati rice, tea, sugar, fresh fruits and drugs and pharmaceuticals to Iran, while importing apples, pistachios, dates and kiwi.
Meanwhile, the death toll in Iran’s nationwide protests increased to over 2,000, according to activists.
India’s basmati rice exports to Iran have slowed down to a near standstill, says a report. This comes after US President Donald Trump’s 25 per cent tariff threat on Tehran’s trading partners stoked fears among rice exporters.
This is an obvious hindrance for exporters as Indian goods are already facing a tariff of 50 per cent from Washington. As per a report in Reuters, suppliers are now wary of new deals due to the risk of non-payment and potential additional tariffs. Indian suppliers are now reluctant to sign new contracts with Iranian buyers.
India is Iran’s largest rice supplier, accounting for nearly two-thirds of all Iranian imports from the country.
An exporter told the news agency that they are worried about the payments for the shipments in the last two months as some of the buyers reported not receiving the full quantity and some have even fled the country because of the ongoing protests.
Dev Garg, vice president of the Indian Rice Exporters Federation (IREF), said in a statement that importers have conveyed their inability to honour existing commitments and remit payments to India citing the turmoil in Iran.
India’s trade with Iran fell to $1.68 billion in 2024-25, out of which $1.24 billion amounted to exports and $440 million imports, which is a significant drop from the nations’ trade of $17.03 billion in 2018-19.
India exports basmati rice, tea, sugar, fresh fruits and drugs and pharmaceuticals to Iran, while importing apples, pistachios, dates and kiwi.
Meanwhile, the death toll in Iran’s nationwide protests increased to over 2,000, according to activists.