Understanding the Trade Concerns Facing Indian Rice Exporters

 


Recently, warnings from the US about additional tariffs linked to trade with Iran have drawn attention across India’s rice export sector. While the situation is still evolving, the implications are already being felt in key export markets.

Why Exporters Are Concerned

According to a Times of India video report, Dev Garg, Vice President of the Indian Rice Exporters Federation, highlighted serious concerns following US President Donald Trump’s warning of additional tariffs on countries trading with Iran. The issue is particularly sensitive because Iran is the second-largest buyer of Indian Basmati rice, sourcing nearly 99% of its basmati imports from India.

Garg noted that uncertainty surrounding the tariff warning has disrupted the Iranian market, leading to pending payments of around ₹2,000 crore and creating a backlog of rice shipments at Indian ports. This has increased financial risk for exporters who operate on tight margins and rely on timely payments to sustain operations.

Source:

https://timesofindia.indiatimes.com/videos/news/us-threatens-25-tariff-on-india-iran-trade-indian-rice-exporters-warn-of-losses/videoshow/126507583.cms

What This Means for the Global Rice Trade

While Garg indicated that higher US tariffs may not significantly reduce overall exports due to strong global demand for Indian rice, he emphasized that the situation in Iran is critical. Exporters have been advised to exercise extreme caution before committing to further shipments to avoid potential financial losses.

This development highlights how geopolitical decisions can ripple through agricultural supply chains. For importers and exporters alike, clarity and stability remain essential to maintaining confidence in global rice trade flows.

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