CHANDIGARH: The fears of an expanding conflict in West Asia involving Iran and Israel have come to pinch India. The immediate victim is India’s basmati rice export, according to the Punjab Rice Millers and Exporters Association (PRMEA).India is the largest exporter of basmati in the world with 40% of the country’s exports coming from Punjab. About 25% of this variety is exported to Iran, which has banned imports for two months from October 21 to support its local crop. “Insurance companies have stopped providing coverage for exports to Iran,” PRMEA vice president Ranjit Singh Jossan told this newspaper.Basmati prices have fallen by Rs 800 per quintal as exporters and millers no longer purchase it in the quantity that they used to. The Indian farmer is struggling on another front as a 15% surplus crop is expected this year, affecting exporters and farmers of Punjab.India emerged as the world’s largest basmati rice exporter in 2023-24. It exported over 52 lakh metric tonnes of basmati, valued at Rs 48,389.18 crore.However, compared to last year, the prices of basmati have fallen. Last year, 1,509 varieties of basmati were sold for Rs 3,500 per quintal and now it is being sold at Rs 2,700 per quintal.Saudi Arabia, a major importer of basmati rice, buys 1 million tons from India and has a significant seaport in Jeddah, close to Yemen.“Ships travelling in this route face threats from Houthi rebels, which previously created difficulties in the Red Sea. The current tensions involving Israel and Iran may lead to higher sea freight costs, potentially impacting basmati rice exports,’’ said Jossan.
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