US Threatens 25% Tariff on India-Iran Trade, Indian Rice Exporters Warn of Losses
Indian rice exporters are sounding the alarm. They face significant financial risks due to a new trade threat from the United States. The US government, under President Donald Trump, has warned it may impose additional tariffs on countries that continue trading with Iran.
Iran's Crucial Role in Indian Basmati Exports
This warning hits India's rice sector hard. Iran stands as the second-largest buyer of Indian Basmati rice globally. A staggering 99% of Iran's Basmati rice imports come directly from India. This trade relationship is vital for thousands of Indian farmers and exporters.
Dev Garg, the Vice President of the Indian Rice Exporters Federation, has publicly expressed deep concern. He stated that the mere threat of US tariffs has already caused major disruption in the Iranian market.
Immediate Impact: Stuck Payments and Port Backlogs
The uncertainty has created immediate logistical and financial problems. Pending payments from Iranian buyers are now stuck. The total value of these delayed payments is estimated to be around ₹2,000 crore.
Furthermore, shipments are piling up at Indian ports. Exporters are hesitant to send new consignments, fearing they might not get paid. This hesitation is creating a growing backlog, disrupting the entire supply chain for Basmati rice.
Exporters Advised to Proceed with Extreme Caution
While global demand for Basmati rice remains strong, which might soften the blow of higher US tariffs, the situation with Iran is described as critical. Dev Garg has issued a clear advisory to all Indian rice exporters.
He strongly recommends exercising extreme care with any further shipments destined for Iran. The goal is to prevent massive financial losses that could cripple the export sector. Exporters must now navigate this new geopolitical risk carefully.
The threat of a 25% tariff adds a heavy layer of uncertainty to a traditionally stable trade route. Indian businesses are now forced to reassess their strategies and prepare for potential market shifts.
