Iran unrest hits basmati rice exports, prices fall sharply as payment delays mount: Industry body
New Delhi (PTI): Civil unrest in Iran has started impacting India's basmati rice exports to the country, leading to a sharp fall in domestic prices, as exporters face payment delays and mounting uncertainties, an industry body said on Tuesday.
The Indian Rice Exporters Federation (IREF) urged exporters to reassess risks on Iranian contracts and adopt secured payment mechanisms, warning against over-leveraging inventories meant for the Iranian market.
India exported USD 468.10 million worth of basmati rice to Iran during April-November of 2025-26 fiscal, totalling 5.99 lakh tonnes, trade data showed.
Iran is India's top basmati rice export destination, but the current financial year has seen growing stress on order flows, payment cycles, and shipment schedules due to the prevailing instability.
The impact is now clearly visible in domestic mandis. Over the past week alone, prices of key basmati varieties have registered a steep decline, reflecting buyer hesitation, delayed contracts and heightened risk perception among exporters.
The domestic price of basmati rice variety 1121 has come down to Rs 80 per kg from Rs 85 per kg last week, while varieties 1509 and 1718 declined to Rs 65 per kg from Rs 70 per kg.
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"Iran has historically been a pillar market for Indian basmati. However, the current internal turmoil has disrupted trade channels, slowed payments and dented buyer confidence," IREF National President Prem Garg said in a statement.
He said exporters must exercise heightened caution, particularly with respect to credit exposure and shipment timelines.
Importers have conveyed their inability to honour existing commitments and remit payments to India, creating uncertainty for exporters, the federation said.
IREF has issued an advisory and appealed to stakeholders to diversify into alternative markets across West Asia, Africa and Europe to cushion any prolonged slowdown in Iran-bound shipments.
"We are not sounding an alarm, but urging prudence. In periods of geopolitical and internal instability, trade is often the first casualty. A calibrated approach is essential to protect both exporters and farmers," Garg noted.
US Tariff Concerns
The federation also addressed concerns over the recent remarks by US President Donald Trump, indicating that countries continuing trade with Iran may face a 25 per cent tariff.
IREF clarified that Indian rice exports to the US are already subject to a 50 per cent tariff, up from 10 per cent earlier.
Despite this, Indian rice exports to the US have remained resilient. India exported 2,40,518 tonnes of Basmati and non-Basmati rice to the US during April-November 2025-26, compared to 2,35,554 tonnes in the entire 2024-25 fiscal.
The US is the 10th largest market for Indian rice globally and the fourth largest for Basmat rice.
"There is limited clarity on whether the proposed 25 per cent tariff would be levied over and above the existing 50 per cent duty," the federation noted, adding that it does not foresee a significant decline in exports even if tariffs rise further, given the unique position of Indian Basmati in global markets.
However, IREF expressed greater concern over developments in Iran, where disruptions in local markets have affected trade settlements. Importers have conveyed their inability to honour commitments and remit payments to India, creating heightened uncertainty.
While similar crises have occurred in the past, the trajectory of the current situation remains unclear and is expected to cause further disturbances in prices, liquidity, and trade sentiment in the weeks ahead, the federation added.
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'Modi will never succeed in suppressing voice of Tamil people': Rahul on 'Jana Nayagan' row
New Delhi (PTI): Congress leader Rahul Gandhi on Tuesday alleged that the Centre's "attempt to block" Vijay-starrer "Jana Nayagan" is an attack on Tamil culture, and said Prime Minister Narendra Modi will never succeed in "suppressing the voice of the Tamil people".
Gandhi's remarks come on a day he is on a visit to poll-bound Tamil Nadu where the row over actor-turned-politician Vijay's Tamil film has snowballed into a major issue.
The producer of the film approached the Supreme Court, challenging a January 9 interim order of the Madras High Court that stayed a single-judge direction to grant the CBFC clearance to the movie.
The Madras High Court has left the fate of the film, which has drawn attention for its political overtones, in limbo.
In a post on X, Gandhi said, "The I&B Ministry's attempt to block 'Jana Nayagan' is an attack on Tamil culture."
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"Mr Modi, you will never succeed in suppressing the voice of the Tamil people," the Leader of Opposition in the Lok Sabha said.
KVN Productions LLP has filed an appeal against the order passed by a division bench of the high court.
Vijay recently launched his political party, Tamilaga Vettri Kazhagam (TVK). "Jana Nayagan", which is widely publicised as Vijay's final film before his full-fledged entry into politics, was slated for a Pongal release on January 9.
However, the film ran into last-minute hurdles after the Central Board of Film Certification (CBFC) did not issue certification in time.
On January 9, the division bench's order came hours after Justice PT Asha directed the CBFC to give clearance to "Jana Nayagan", setting aside the film board's directive to refer the matter to a review committee.
The first bench, comprising Chief Justice M M Shrivastava and G Arul Murugan, on an appeal filed by the CBFC, granted an interim stay against the single judge's verdict.
Earlier, allowing the plea of KVN Productions seeking a direction to CBFC to issue a censor certificate, Justice Asha said once the board had decided to grant the certificate, the chairperson had no power to send the matter to the review committee.
The film board immediately preferred an appeal against the order.
Additional Solicitor General ARL Sundaresan and Solicitor General Tushar Mehta, who appeared through video conferencing, outlined the grounds for the appeal before the division bench.
The January 6 letter of CBFC, which was communicated to the producer of the film, informing him that the matter was referred to the revising committee, was not at all under challenge. But the single judge set aside the letter and gave the above direction.
In its order, the division bench said the petition was filed on January 6, and the CBFC was not granted sufficient opportunity to file its reply.
There shall be a stay, the bench added and ordered notice to the producer of the movie and posted the matter to January 21.
