By Admin 
Trump tariffs on Iran: Intensifying his efforts to corner Iran, US President Donald Trump has announced to impose 25 percent tariff on countries doing business with it. Now the question comes that how much loss will this cause to India? The government says that trade between Iran and India is limited, so there is no possibility of any significant impact.
Trade between Iran and India
Last year, trade between Iran and India was about $1.6 billion, which is a small part of the estimated $68 billion of imports from other countries in 2024. In comparison, Iran’s second largest business partners include UAE ($21 billion), China ($17 billion), Turkey ($11 billion) and European Union ($6 billion). Iran imports goods from these countries on a large scale. This shows how minor India’s role is in Iran’s trade ecosystem.
Why are exporters worried?
However, despite this, some Indian exporters are upset with the tariffs imposed by Trump on Iran because rice, especially Basmati rice, is exported in large quantities from India to Iran. India supplies about two-thirds of Iran’s rice imports. In such a situation, Indian exporters are worried about the delivery due to the new tariff imposed by Trump. They are also being cautious in signing new contracts with rice buyers in Iran. They fear that the payment might get stuck due to the risk of delivery. This is the reason why India’s rice exports to Iran have declined.
Quoting IREF data, news agency ANI said, the domestic price of the popular Pusa Basmati-1121 has declined to Rs 80 per kg from Rs 85 per kg last week. Similarly, the prices of 1509 and 1718 varieties have also reduced from Rs 70 per kg to Rs 65 per kg. This fall in prices has come at a time when Iran remains one of India’s largest markets for Basmati rice.
Where are the problems coming in business?
“Iran has historically been a key market for Indian Basmati. However, the current internal turmoil has disrupted trade channels, slowed payments and reduced buyer confidence,” IREF National President Prem Garg told ANI. He further said that many importers have expressed their inability to fulfill existing commitments and send payments, which has created uncertainty for Indian exporters.
According to industry data, India exported basmati rice worth about Rs 4,212.9 crore to Iran during April-November 2025-26, which was 5.99 lakh metric tonnes. This reflects the importance of Iran as a major destination for India’s premium rice exports. IREF data shows that between April 1, 2024 and March 25, 2025, India exported a total of 198.65 lakh tonnes of rice, of which 59.44 lakh tonnes was Basmati rice.
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