Srinagar, Mar 13 (KNO): The ongoing conflict between Iran and Israel has begun to cast a shadow on India’s agricultural export sector, with traders and millers in Jammu and Kashmir’s renowned rice belt of R.S. Pura reporting significant disruptions in the export of premium basmati rice.
R.S. Pura basmati, which enjoys a prestigious Geographical Indication (GI) tag, is internationally recognised for its distinct aroma, long grain and superior cooking quality.
The rice is exported in large quantities every year to markets across the Gulf region, Europe, and several other countries. However, exporters say that escalating hostilities in the Middle East have severely disrupted shipping routes, leaving several consignments stranded and creating uncertainty in the export chain.
Traders in the region told the news agency—Kashmir News Observer (KNO) that consignments of basmati rice are currently stuck either in transit or at ports due to disruptions in shipping routes to Iran and other Gulf destinations. The Middle East is among the largest consumers of basmati rice, which is widely used in traditional dishes such as biryani.
Sandeep Singh, an owner of one such mill, said the ongoing crisis has brought exports almost to a halt. “Our mill alone exports nearly 20,000 quintals of basmati rice annually to Gulf and European markets. Because of the war, shipments have come to a standstill. Several consignments are stuck, and payments are pending in Delhi,” he said.
Singh added that the disruption has created serious financial strain for millers and farmers alike. “Farmers are waiting for their payments, but since exporters are not receiving funds from buyers, we are unable to clear their dues on time. This has created a chain reaction affecting the entire industry,” he said.
With the situation worsening, traders and mill owners have appealed to the government for immediate intervention. They have requested External Affairs Minister S Jaishankar and J&K's Food & Supplies minister Satish Sharma for relief measures for the affected sector.
The exporters have requested the government to explore diplomatic solutions to ease trade disruptions and provide financial support to millers and exporters facing losses.
Among their key demands is a waiver or reduction of loan interest rates to help businesses survive the crisis.
The disruption in exports has also triggered a sharp decline in basmati rice prices in the domestic market. Traders say the price of R.S. Pura basmati has fallen by nearly 600-800 per quintal, dealing a severe blow to farmers who had hoped for better returns after last year’s harvest.
“The rice crop was harvested in November, and February–March is normally the peak export season when international demand is highest,” Singh said. “Due to the ongoing conflict, the entire export chain has been disrupted, and the industry is facing heavy financial losses.
Farmers in the R.S. Pura belt—one of the most prominent basmati-growing regions in Jammu and Kashmir—fear that if the conflict continues and export routes remain affected, the losses could deepen in the coming months.
Basmati exports are a crucial source of income for thousands of farmers, millers and traders in the region. Any prolonged disruption in international trade could significantly impact the rural economy that depends heavily on this premium crop.
Stakeholders are hoping for a swift resolution to the geopolitical tensions so that normal trade routes can resume and the export cycle for the prized R.S. Pura basmati can be restored—(KNO)