PTI Chandigarh

With the escalation of Iran-Israel conflict, rice exporters in Haryana -- which accounts for 30 per cent of the country's basmati rice shipments to Iran -- are struggling with major disruptions in ship movements and payment delays.

While Karnal is the main hub of basmati exports, Kaithal and Sonipat too contribute to the foreign demand. "The ongoing Iran-Israel conflict has impacted the trade," said Sushil Jain, Rice Exporters Association's state unit president.

"Nearly 10 lakh metric tonnes of Basmati rice is exported from the country to Iran, of which Haryana's share is about 30-35 per cent," he said, adding that shipments of about 1 lakh metric tonnes of basmati rice for Iran are stuck at ports. Besides, the payments amounting to Rs 1,500 crore to Rs 2,000 crore for nearly 2 lakh MT of the rice exported to Iran by Indian exporters has also got stuck due to the conflict, Jain said.

The escalation in the conflict is going to impact the Indian market which is already witnessing some fall in the prices, he said.

"Another issue which the exporters are facing is the lack of insurance cover for the vessels during war which increases the risk for us," he added. Iran is India's second-largest basmati rice market after Saudi Arabia. India exported around 1 million tonnes of the aromatic grain to Iran during the 2024-25 fiscal year.