Iran protests spook Indian rice export hub (VIDEO)
The recent unrest in Iran has had an impact on a region thousands of miles away – in India’s rice export and trading hubs in the northern state of Haryana, bordering Delhi.
RT India traveled to the Indian state to ascertain the scenario caused by the turmoil in Iran, which sources most of its rice from the South Asian nation.
India became the world’s largest producer of rice in December, surpassing China. The country recorded an output of 150.18 million tons of rice, compared to China’s 145.28 million tons.
India has also been the world’s largest rice exporter for more than a decade, accounting for 40% of the global trade.
At a facility of one of the country’s oldest manufacturers and exporters in Haryana, RT India found rice stocks piling up, an uneasy takeaway of trade disruptions caused by the Iran unrest sparked by economic issues, including the collapse of the rial.
The work processes and trade flow in warehouses storing rice in Sonipat, Haryana, have slowed down.
“The entire value chain has been affected,” Kanishk Manchanda, a trader, said. “The farmers, traders and manufacturers – all of them – have been affected.”
India’s exports to Iran in April-November 2025 were down to $765 million from $813 million a year ago, a drop of 6%.
Basmati rice exports to Iran accounted for $468 million, but a huge chunk of those shipments is now stuck, and payments worth $180 million to $240 million are on hold, according to the Indian Rice Export Federation.
“What is unique about protests this time is that all the protests and disruptions reported from Iran are predominantly from bazaars, where all retail shops are based,” IREF Vice President Dev Garg said.
Most of the importers have their offices in the bazaars, Garg added, citing this as the main reason for the decline in the rice trade. “If the protest is happening in your neighborhood... you are not going to contact anyone else to carry on trade,” he said.
India exports edible oils, fruits and vegetables, tea, and spices to Iran. While all of these have been affected, rice dominates the export basket, and has caused the greatest impact.
