Rice exports to Iran hold firm despite heightened US sanctions threat

India, the world’s biggest rice exporter, is confident sales to Iran can weather the threat of tougher US sanctions, with shipments holding up despite higher prices and months of wartime disruption. Rice dominates trade between the two countries, accounting for nearly two-thirds of India’s $1.25 billion in exports to Iran in the fiscal year ended March, government data shows. Iran bought about 7% of India’s $11.5 billion in global rice exports. Demand from Iran has held up despite higher prices and months of war-driven trade disruption as the country has been purchasing for “food security reasons,” according to Mr Ajay Bhalothia, General Secretary of the All India Rice Exporters Association. Other key Indian shipments to Iran include pharmaceuticals, tea, bananas, cereals, bovine meat and some chemicals. Even these are unlikely to be disrupted, exporters say, citing a humanitarian exception and limited alternatives, said a report.

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