Rice exporters likely to be impacted by Iran situation and US tariff after last year’s surge

India’s rice exports may bear the brunt of escalating tensions in Iran and US President Donald Trump’s latest move to impose 25% tariffs on any country doing trade with Iran. Effective immediately, any country doing business with the Islamic Republic of Iran will pay a tariff of 25% on any and all business being done with the United States of America.  Recent export figures show that India shipped Basmati rice worth $468.10 million to Iran during April to November of 2025-26, aggregating 5.99 lakh metric tonnes. According to the Indian Rice Exporters Federation (IREF), despite Iran remaining one of the most important overseas markets for Indian Basmati, the ongoing instability has increasingly strained order execution, delayed remittances and unsettled delivery schedules in the current fiscal year, as per a report.

This comes after the country’s rice exports jumped 19.4% last year to the second-highest on record after New Delhi lifted all export curbs, making shipments more competitive. An improved flow of rice from the world’s largest exporter of the grain curbed shipments from rivals Thailand and Vietnam and drove prices in Asia to their lowest in nearly a decade. Indian shipments rebounded quickly after the government lifted export restrictions in March. As supplies improved with record production, India removed the last of the export curbs imposed in 2022 and 2023.

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