Amid escalating geopolitical tensions between Iran and Israel, Indian tea and basmati rice exporters have decided to halt exports to Iran, Israel, and other Middle Eastern countries. The tension surged between the two countries following Israel’s strike near Iranian nuclear facilities in Isfahan, seen as a retaliatory move.
Anticipating further unrest in the region, exporters have decided to withhold shipments to the area.
We no longer ship teas to Iran, said Anish Bhansali, managing partner of Bhansali & Co., one of the largest exporters to that country. It doesn’t seem like the geopolitical situation will get better anytime soon. Shipping companies are going to avoid the area until things get better.”
“We anticipated shipping 40–45 million kilogrammes of tea to the Gulf country this year. The first purchase of the new season teas by Iran gave us hope,” said Asian Tea Company director Mohit Agarwal.
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Iran also imports basmati rice from India, adding to the array of agricultural commodities exchanged between the two countries. In the fiscal year 2024, India exported one million kg of basmati rice to Iran, constituting a portion of its total exports of 4.9 million kg.
Gautam Miglani, the managing partner of LRNK, a basmati rice exporting firm based in Haryana with a 50-year legacy, stated, “We’ve suspended our exports and are refraining from accepting future orders due to the prevailing geopolitical tension.”
The Iranian port serves as a transit point for Middle Eastern countries and Turkey. Previously, 5-6 ships arrived from the Iranian port. However, the number has now been reduced by half. The wait time at the Indian port has increased for basmati rice exporters. Furthermore, insurance companies are reluctant to give coverage for exports to Iran. So there’s no use in exporting rice right now. “The industry is in wait-and-see mode.”
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