During the last Financial Year, India Exported Basmati Rice to Iran worth Rs.10, 800 Crores. The total amount of Basmati rice exported to other countries like Saudi Arabia, UAE, Yemen, Africa, and Iraq worth 32,800 Crores.
Reason Behind The suspension of Basmati Rice Export
The top Iranian Commander Qasem Soleimani was killed in a USA drone strike in Iraq. Indian Basmati Rice Exports To Iran and Saudi Arabia are likely to be affected by the rising tension between the USA and Iran. During the unusual situation, Basmati Rice Export is not possible until the situation becomes clearer by AIREA.
In the last Financial Year, Basmati Rice Export To Iran hits the Indian market which is followed by the Middle East. For this current situation, both countries have decided to ban Import Basmati Rice From India.
Impacts Of Suspension of Basmati Rice Exports
Iran is an important destination for Rice Exports From India. Due to the suspension, the domestic market price of India is affected.
- Due to the variation in the domestic market price the farmers’ incomes are also getting affected.
- At an average of Rs.900 Crores is still pending from the Import Market From Iran. It will affect the Indian GDP.
- Non-Export of Basmati Rice to Iran and Saudi Arabia will surplus the stock of Indian Basmati Rice. It will affect the Indian Market Price.
- Generally from November onwards, the Basmati Rice Export From India has been started. But so far, not much amount of rice has been exported.
- Iranian Government issues letter of credits for Basmati Rice Import but till now, which has been kept on hold.
From the historical perspective of trading, India’s relation with Saudi Arabia and Iran which has been growing influence in Basmati Rice Export Market, as well as other economic activity, are likely to grow in the future.
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