India Rice, Tea Exporters Worried as New Flare Ups Emerge in Middle East
India exporters of basmati rice and tea reportedly fear their shipments to the Middle East could be impacted, following eruption of fresh flare-ups in the region.
Countries such as Iran, Israel and adjoining nations are major consumers of basmati rice and if the region turns into a conflict zone, Indian exports could get heavily impacted, industry players and trade bodies said.
Vijay Setia, a leading exporter and former president of All India Rice Exporters Association, said shipping routes will change if the tension further escalates.
“Then it will become a very difficult situation for the basmati rice exporters. This week is very crucial for us.”
Iran accounted for $598 million of the total nearly $4.59 billion worth of basmati rice exported in the first 11 months of last fiscal, as per government data.
Tea exporters said they were looking forward to further expanding their business with Iran this year, with plans to ship 40 million kgs of tea to the Middle East country, now the epicentre of a new conflict.
