Iran-Israel conflict fallout: Basmati glut meets export drought
Amritsar: The Israel-Iran conflict has triggered a crisis in the Indian basmati market, leading to an oversupply and a sharp decline in prices.
Warehouses are overflowing with basmati bags due to the suspension of exports to Gulf countries, especially Iran, which alone consumes 20% of Indian basmati, primarily sourced from Punjab and Haryana.
According to market analysts, the financial year 2024–25 began with a promise as India's basmati rice exports soared to 60 lakh tonne, an 8 lakh tonne increase over the previous year. "It was a strong sign of global appetite and growing demand for Indian basmati, particularly from Iran and the broader Middle East, which absorb nearly 75% of India's basmati, especially the Sela (parboiled) variety cherished in Iranian kitchens," said Tejinder Singh, chief executive officer of Amar Singh Chawla Wala, makers of the popular Lal Qila basmati brand,
With Iran threatening to close the Strait of Hormuz—a vital trade artery—major shipping lines have suspended operations to Iranian ports.
Insurance companies have backed out, unwilling to risk covering shipments through a war zone. The vessels en route were docked at Iranian ports, where they offloaded their cargo, Tejinder said.
Tejinder further said that the glut of basmati has started to choke the Indian market, and its ripple effects are now hitting every level of the supply chain. He said that the prices have dropped from Rs 7,000 per quintal to Rs 6,200.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
What She Did Mid-Air Left Passengers Speechless
medalmerit
Learn More
Undo
Export prices, once commanding between $850 to $950 per tonne, have seen a 10-15% decline. With the new basmati crop expected to arrive from mid-Sept through Nov, the situation is set to worsen.
Rattan Singh, a farmer, said that they were hoping to cash in on strong prices, but under the present circumstances, the rates could fall by Rs 500 per quintal for both PUSA 1509, 1121, and other variants. "This glut is unlike anything we have seen in recent years.
And it's not because of poor demand. It's because the world has stopped moving," he added.
At the heart of the crisis lies Iran, where not only the shipping lines have collapsed, but so has the banking system. Tejinder said that the ongoing conflict has rendered financial transactions nearly impossible. At any given time, nearly Rs 100 crore of Indian basmati exporter money is stuck in Iranian channels, held up by broken payment links and frozen banking infrastructure.
R S Sachdeva, former chairperson of the Punjab state chapter, PHD Chamber of Commerce and Industry, said if the export ban continues and the new crop arrives amidst an already saturated market, prices will crash further. "The brunt of this will fall on the farmers—many of whom are smallholders who cannot afford a bad season. Loans taken in anticipation of a lucrative year may spiral into debt traps," he observed.
Yet, there is a sliver of hope. Many believe that when exports eventually resume, there will be a surge in demand. "After all, Iran and the Middle East cannot go without their staple. International organisations, possibly the UN or food aid agencies, may step in to ensure food security in conflict-ridden regions. Rice is not a luxury for them but a necessity; then the market will boom again," hoped Tejinder.
MSID:: 121975248 413 |
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
30 minutes ago
- Hindustan Times
Dubai man trolled for inviting IIM students to work for free: ‘No stipend, get real-world exposure'
A Dubai-based Indian professional has sparked a wave of backlash after inviting MBA students from India's top business schools to apply for an unpaid short-term project. Sahil Deshmukh's LinkedIn post on a 'no stipend' position for MBA students was met with outrage, with many calling it a slap in the face of students who spend lakhs and work hard to secure admission to B-schools like the IIMs and XLRI. Unpaid internship for IIM students? Hiring post draws flak (Representational image) Deshmukh, who works as a Manager in the Global CEO's Office at Erba Mannheim, is himself a graduate of IIM Lucknow. In a post shared on LinkedIn one day ago, he announced a vacancy for MBA students from top institutions like the Indian Institute of Management and the Faculty of Management Studies, Delhi. 'Looking for MBA students from IIMs, FMS, SPJIMR, XLRI, MDI, or other top B-schools for a short-term live project,' Deshmukh wrote. 'It's a 3-4 week remote project with no stipend, but a good opportunity to work closely with the leadership team on strategic initiatives,' the Dubai-based employee revealed. He called the position 'Ideal for someone looking to get real-world exposure and contribute meaningfully.' The backlash The backlash was swift, massive and entirely expected. In the comments section of the post, many called out Deshmukh for expecting MBA students to work for free. has reached out to him for a statement. This copy will be updated on receiving a response. 'Let's put an end to the exploitation of unpaid internships. As Indians, it's time we speak up against a toxic work culture that normalizes offering no stipend in exchange for full-time effort,' wrote one LinkedIn user. 'And the saga of unpaid work (in the name of 'gaining experience'), keeps on thriving. Quite sad,' another said. 'Pay. It's not a difficult thing to do. Don't loot people in the name of experience,' LinkedIn user Piyush said. 'You want people from top B-schools to put their heart and soul into a project , 'contribute meaningfully' but with no stipend? Crazy,' another added. The post also reached Reddit, where reactions were overwhelmingly negative. 'Getting freshers with no experience a start is different, hiring generic MBAs is different. But asking for tier 1 MBAs and refusing to pay them is crazy,' a user said.
Economic Times
31 minutes ago
- Economic Times
ఇరాన్ పై యుద్దానికి దిగిన అమెరికా.. రేపు స్టాక్ మార్కెట్లు ఎలా ప్రారంభం అవుతాయంటే?
us iran tensions impact on indian stock market key levels to watch for nifty 50 and sensex
Time of India
37 minutes ago
- Time of India
Weekly Horoscope (June 23 – June 29): Predictions for Snake Chinese Zodiac
The Snake is wise, calm and observant. This week, your choices must come from peace, not fear. Anxiety may try to confuse you, but when you act from your deeper truth, success will follow. Do not rush. The stars suggest that when you move with quiet intention, even big problems become small. Trust your inner knowing. When decisions feel light, they are right. Let your calm mind guide the way forward. Weekly Career Horoscope for Snake Chinese Zodiac For career, Snakes will benefit by choosing quality over speed. You may feel pressure to match others' pace, but that can lead to anxiety. Pick tasks and roles that align with your real values. Professions involving strategy, counselling, writing or research will suit you. If you feel overworked, slow down and realign. Saying 'no' is also a wise act. Look for work that respects your thinking style and gives you space to shine quietly. Weekly Love Horoscope for Snake Chinese Zodiac In love, Snakes should listen to the feeling under the surface. You often hide your emotions, but this week asks for clear connection. Make decisions based on peace, not worry. If in a relationship, speak about what really matters. Your love life will grow when you feel secure in yourself. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Perdagangkan CFD Emas dengan Broker Tepercaya IC Markets Mendaftar Undo True love will not cause anxiety. Let calm hearts meet. Weekly Money Horoscope for Snake Chinese Zodiac Money will be more stable if you plan slowly. The Snake should not invest from fear or copy others' actions. Instead, make choices that fit your situation calmly. This week is not for gambling or guessing. If your work is aligned with your values, money will come naturally. Do not spend to escape emotions—use your money mindfully. Small steps bring stable success. Weekly Education Horoscope for Snake Chinese Zodiac In education, Snake students need a peaceful space to focus. Too much noise or pressure can disturb your inner clarity. Choose subjects that interest you truly, not just those that sound impressive. Your memory is strong, but anxiety can block understanding. Study at your own pace. Use breaks to stretch or listen to soft music. Make a schedule that includes calm time. You will shine when you study with balance, not stress. Weekly Health Horoscope for Snake Chinese Zodiac For health, Snakes should take care of nerves, digestion and skin. Worry can show up in your stomach or as restlessness. Eat simple and warm meals. Avoid too much coffee or cold drinks. Skin may become dry—use coconut oil or natural creams. Gentle yoga, tai chi or walking in the morning will refresh you. Talk out your thoughts to someone close. Inner calm is your medicine this week. Move from anxiety to alignment. Discover everything about astrology at the Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces .
