Andhra Pradesh: The immediate impact of the Iran war on India’s rice exports is already visible in several ways, mainly affecting basmati rice, because Iran and the Middle East are major buyers of Indian rice.
1. Shipments are getting stuck
around more than twi lakhs tonnes of Indian basmati rice are stuck at ports or in transit due to disruptions in Middle East shipping routes. Ports and logistics routes linked to Iran (like Bandar Abbas) are affected, so exporters cannot deliver orders.
2. New export deals are being paused
Exporters are suspending new contracts because shipping insurance and freight costs have increased due to war risk. Some exporters may invoke force-majeure clauses if shipments cannot be delivered.
3. Rice prices are falling in India
With exports slowing, basmati rice prices in the domestic market have fallen about 7–8%. Some traders reported a drop of ₹6–8 per kg within a day after the conflict started.
4. Payment delays and financial risk
Exporters face delayed payments from Iranian buyers due to banking and trade disruptions. Currency and sanctions issues already made transactions difficult with Iran.
5. Big market for India at risk..
Iran is one of the largest buyers of Indian basmati rice:
About 25% of India’s basmati exports go to Iran.
White Rice exports are mostly stable most non basmati (white rice) from India is exported to Africa and South East Asia..not mainly to Iran or Gulf. Even thouth the market is different exporters still face logistic problems such as shipping disruptions in the middle east region and increase of fright cost due to war risc insurence and shipping delays.
So white rice exports slightly affected. Mostly Affected States: Panjab, Haryana, Uttarpradesh & Madhyapradesh
Main fruits affected in Export:
Banana, Grapes, Pomegranates, Water milon, Musk million, Pine Apple and Apples..
Main Vegetables affected in Export:
Onions, Lady’s finger (bindi), Bottle guard (Sorakaya), Baby corn, Leafy vegetables, Betel leafs..
Fruits and vegetables are perishable and cannot survive long shipping delays.
Iran and Gulf countries are majer buyers of Banana.. one of the Indias biggest fruit exports.
Many of the Fruits containers are stuck in ports.
Exporters fear spoilage because fruits are highly perishable..
Mostly Affected States: Maharashtra, Andhrapradesh (Mainly Rayalaseema) Tamilnadu & Madhyapradesh
Mejarity of Fruits and Vegetables growers are small and marginal farmers..
Eggs affected in Exports: Huge losses for Poltry..
The biggest egg export hub in India is Namakkal in Tamilnadu often called the *Egg City of India*
Prices dropped to arround Rs 3.80 per egg because of export quantity had to be redirected to Indian markets.
Affected States: Tamilnadu, Andhrapradesh, Telangana & Karnataka
Sea Foods affected in Exports:
Andhrapradesh Shrimp farmers are mostly affected due to fall of selling price..
MVS Nagireddy, MSc.,
YSRCP General Secretary,
Former Vice Chairman,AP State Agriculture Mission,
Ex Member, I C A R.
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