Iran-Israel may reduce the price of basmati rice, understand how this will happen here?

The tension between Iran-Israel is continuously increasing. Both countries have come in a state of war. If the situation remains the same, then many things can be expensive in the whole world to come. However, among expensive things, one thing can be cheap for India.

In fact, in the last two months, the prices of basmati rice had increased by 15 to 20 percent. The biggest reason for this was the growing exports abroad, especially in West Asia. But now this boom may brake, because the ongoing tension between Iran and Israel may reduce the export to Iran.

Iran’s third largest buyer for India

According to APEDA (Agricultural and Processed Foods Export Development Authority), Iran is the third largest country to buy basmati rice from India. In FY 2024-25, India exported a basmati rice of about Rs 6,374 crore to Iran, which was around 12.6 per cent of the total exports.

Prices fell first, then increased

In the last months, when the prices of basmati rice in India fell from 75 to 90 rupees per kg, the countries of West Asia and Iran had shopped in large quantities. This increased exports and then prices also risen. Speaking to the Economic Times, Exporter Rajesh Jain Pahadia said that till a month ago, it was being exported at the rate of $ 950–1000 per tonne, but now it has come down to $ 900–950 per tonne. According to him, the cost of increasing the cost of freight charge i.e. freight and delay in transit has brought correction.

Now what next?

If there is tension between Iran and Israel or there is a major political change globally, then Basmati rice prices can take a bounce again. But at the moment it is expected that prices may fall slightly and the market may remain stable.

Also read: Iran-Israel battle for India alarm bells, oil besides oil, these things will also increase prices