Indian Rice Exporters Defy New US Sanctions on Iran

Indian rice exporters expect trade with Iran to remain stable following new sanctions unveiled by the administration of Donald Trump. Rice constitutes nearly two-thirds of India's 1.25 billion dollars in exports to Iran, with the country purchasing over 1 million tons last financial year, marking a 17 percent increase.

Industry leaders argue that the trade is protected by humanitarian exceptions for food staples and a lack of alternative suppliers for Iran. To mitigate sanctions risk and avoid direct transactions with Iranian banks, Indian traders have utilized financial channels in the UAE, Germany, China, and Turkey.

While India has largely avoided importing Iranian crude oil since 2019, officials and industry leaders maintain that essential shipments of rice, pharmaceuticals, and tea should continue uninterrupted. The Federation of Indian Export Organisations has called for government intervention on humanitarian grounds to assist exporters in maintaining these flows.