Iran-US conflict halts 400,000 tons of Indian Basmati rice
The sudden escalation of the Iran-US conflict has stranded nearly 400,000 metric tons of Indian Basmati rice at ports and in transit. Following the closure of the Strait of Hormuz by Iran’s Revolutionary Guard on March 2, 2026, shipping insurance premiums jumped by 50%, making current export contracts unviable. Since the Middle East buys 72% of India’s Basmati, the Iran-US conflict is causing local wholesale prices to drop by 6%, directly hitting the income of farmers in Punjab and Haryana in India.
- Stranded Cargo: 200,000 tons are currently stuck at Indian ports like Mundra and Kandla, with another 200,000 tons idle in transit.
- Shipping Crisis: Freight rates have doubled since the weekend, forcing the Indian Rice Exporters Federation (IREF) to stop new “Cost, Insurance, and Freight” (CIF) deals.
- Payment Delays: Approximately Rs 6,000 crore in payments from Iran are now at risk as banking channels face disruptions due to the military strikes.
- Market Impact: Major rice stocks, including LT Foods (Daawat) and KRBL (India Gate), saw share prices drop by up to 11% this week.
👉 Why it matters: India and Pakistan are the only global sources of Basmati. If the Iran-US conflict keeps the Strait of Hormuz closed, it creates a global food supply gap while simultaneously crashing the price farmers get at home due to oversupply.
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Written and summarized by our editorial team using human review & a bit of AI assistance. Edited & Approved by Debraj Paul, Founder of ArticoliNews Media-Tech