Basmati rice prices drop by 5%

Basmati rice prices have fallen by around 5% over the past two weeks due to uncertainty regarding the impact of US sanctions on Iran. Exporters have asked the government for clear guidelines on the payment mechanism with Iran.

Iran has emerged as India’s largest export market for Basmati rice over the years with over 30% of exports. Over the past six months, India was importing oil from Iran through a rupee-based mechanism via UCO Bank, which made payments to Indian exporters for exports to Iran. This mechanism is no longer feasible due to the discontinuation of the waiver given by the US for oil imports from Iran.