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Time of India
6 days ago
- Business
- Time of India
Iran-Israel conflict impact: Basmati rice prices to drop as exports to Iran, third largest buyer of Indian basmati, expected to decline
During 2024-25, India's basmati rice exports to Iran were valued at ₹6,374 crores. (AI image) Basmati rice prices, which saw an increase of 15-20% in the past two months due to higher exports, are expected to decrease in the upcoming weeks as exports to Iran may decline amidst its ongoing conflict with Israel. According to the Agricultural and Processed Foods Export Development Agency (APEDA), Iran ranks as the third-largest purchaser of Indian basmati rice, following Saudi Arabia and Iraq. During 2024-25, India's basmati rice exports to Iran were valued at ₹6,374 crores, representing 12.6% of India's total basmati exports for that period. Major importing nations from West Asia and Iran had enhanced their purchases after Indian Basmati rice prices had fallen to ₹75-90/kg, leading to an upward price movement. "The export prices have come down from $950-1000/tonne about a month ago to $900-950/tonne," said Rajesh Jain Paharia, an exporter of Basmati rice according to an ET report. Basmati rice "Prices have corrected, as freight is expected to go up due and transshipment issues," said Paharia. "Prices of Indian Basmati rice had reached their bottom by April as the global export demand was less due to multiple factors. However, export demand increased as everyone wanted to stock at low prices, bringing a surge in exports in May and a consequent increase in prices by about 15-20%," said Dhaval Shah, an exporter and domestic trader of Basmati rice in Maharashtra. "Although the prices are likely to remain stable for now, factors like the Trump effect or any escalation of the war will decide the future course of prices. Countries tend to buy more to ensure their food security if they see indications of escalation of war." The Indian Rice Exporters Federation's national president, Prem Garg, expressed concerns regarding current sea shipments and pending payment issues. Trade estimates indicate that outstanding dues for Basmati trade with Iran typically amount to ₹1,000-1,200 crore. "In our trade with Iran, we take 20% advance payment and rest all is on 180 days credit," said Pahariya. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Economic Times
7 days ago
- Business
- Economic Times
Basmati prices may soften soon amid Israel-Iran conflict
Basmati rice prices, recently elevated due to increased exports, are anticipated to decrease as exports to Iran are expected to decline amidst geopolitical tensions. While Iran's conflict with Israel impacts demand, outstanding payments and freight concerns add to the uncertainty. The market's future hinges on global events and potential shifts in trade dynamics. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Pune: Prices of Basmati rice, which have increased by about 15-20% over the last two months due to a jump in exports, are likely to reduce in the coming weeks as exports to Iran are expected to decline due to its conflict with prices of Indian Basmati rice dropped to ₹75-90/kg, major importing countries from West Asia and Iran had increased buying, causing prices to move is the third largest buyer of Indian basmati rice after Saudi Arabia and Iraq, according, Agricultural and Processed Foods Export Development Agency ( APEDA ). In the 2024-25, India had exported basmati rice worth ₹6,374 crores to Iran, which accounted for 12.6% share of India's total basmati exports in 2024-25. "The export prices have come down from $950-1000/tonne about a month ago to $900-950/tonne," said Rajesh Jain Paharia, an exporter of Basmati rice."Prices have corrected, as freight is expected to go up due and transshipment issues," said said that the export volumes had declined for a few months since January."Prices of Indian Basmati rice had reached their bottom by April as the global export demand was less due to multiple factors. However, export demand increased as everyone wanted to stock at low prices, bringing a surge in exports in May and a consequent increase in prices by about 15-20%," said Dhaval Shah, an exporter and domestic trader of Basmati rice in Maharashtra. "Although the prices are likely to remain stable for now, factors like the Trump effect or any escalation of the war will decide the future course of prices. Countries tend to buy more to ensure their food security if they see indications of escalation of war."Prem Garg, national president, Indian Rice Exporters Federation, said, "There are concerns about the shipments that are currently on the seas. There are also worries about payment dues."According to trade estimates, usually, the outstanding dues of Basmati trade with Iran stand at ₹1,000-1,200 crore. "In our trade with Iran, we take 20% advance payment and rest all is on 180 days credit," said Pahariya.
Time of India
7 days ago
- Business
- Time of India
Basmati prices may soften soon amid Israel-Iran conflict
Pune: Prices of Basmati rice, which have increased by about 15-20% over the last two months due to a jump in exports, are likely to reduce in the coming weeks as exports to Iran are expected to decline due to its conflict with Israel. After prices of Indian Basmati rice dropped to ₹75-90/kg, major importing countries from West Asia and Iran had increased buying, causing prices to move up. Iran is the third largest buyer of Indian basmati rice after Saudi Arabia and Iraq, according, Agricultural and Processed Foods Export Development Agency ( APEDA ). In the 2024-25, India had exported basmati rice worth ₹6,374 crores to Iran, which accounted for 12.6% share of India's total basmati exports in 2024-25. "The export prices have come down from $950-1000/tonne about a month ago to $900-950/tonne," said Rajesh Jain Paharia, an exporter of Basmati rice. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Tam Binh: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo "Prices have corrected, as freight is expected to go up due and transshipment issues," said Paharia. Live Events Exporters said that the export volumes had declined for a few months since January. "Prices of Indian Basmati rice had reached their bottom by April as the global export demand was less due to multiple factors. However, export demand increased as everyone wanted to stock at low prices, bringing a surge in exports in May and a consequent increase in prices by about 15-20%," said Dhaval Shah, an exporter and domestic trader of Basmati rice in Maharashtra. "Although the prices are likely to remain stable for now, factors like the Trump effect or any escalation of the war will decide the future course of prices. Countries tend to buy more to ensure their food security if they see indications of escalation of war." Prem Garg, national president, Indian Rice Exporters Federation, said, "There are concerns about the shipments that are currently on the seas. There are also worries about payment dues." According to trade estimates, usually, the outstanding dues of Basmati trade with Iran stand at ₹1,000-1,200 crore. "In our trade with Iran, we take 20% advance payment and rest all is on 180 days credit," said Pahariya.
