Telangana: War disrupts rice trade, shipments to Iran stuck

By Sribala Vadapatla

Amid escalating tensions in the Gulf, rice exports to war-hit regions have hit an unexpected roadblock, leaving Indian exporters scrambling as consignments remain stranded at sea.

In a notable shift from usual trade patterns, Iran—caught in the midst of the conflict—had placed large orders not for its regular high quality basmati rice, but for premium broken rice and parboiled basmati rice from India. However, the shipments could not be completed, with tonnes of rice now stuck in vessels off the Mumbai coast and in Gulf waters.

Market sources said around 15 to 20 Indian exporters are involved in supplying rice to Iran. Traditionally, Gulf markets, including Iran, primarily import basmati rice. This time, however, Iran placed significant orders for premium broken rice as well. While broken rice in India is largely used as poultry feed, in Iran, premium broken rice is widely used, particularly for making dough-based foods.

From Telangana, Sri Rama modern and parboiled rice mill received orders from Iran. “We dispatched 15 containers of premium broken rice and about 30 tonnes of parboiled basmati rice, along with other varieties of rice, to Iran. However, due to the ongoing war situation, our containers are now stuck in Mumbai and the Gulf waters. Additionally, the banking system in Iran is not functioning properly. We are exploring local markets wherever the containers are held,” said mill director Rishab Biyani.

Parboiled basmati rice

There was also a specific demand for parboiled basmati rice, which is known for its higher fibre content, lower calories and carbohydrates, and relatively higher protein levels, making it a healthier alternative to regular basmati. The parboiling process enhances its nutritional value by altering its structure at the molecular level.

Under international agreements, state or central govts are not permitted to export rice directly, leading most countries to place orders with private exporters. Telangana, however, had earlier secured special permission to export rice to the Philippines.

This article has been republished from The Times of India.