Kamal Ghorui
India’s premium basmati rice trade has come under severe strain as the escalating conflict in West Asia disrupts exports, blocks consignments at ports and leaves payments worth thousands of crores pending, raising concerns for traders and farmers alike.A Bhopal-based businessman told ANI that consignments of Premium 1121 Basmati rice, earlier exported regularly, are now stuck at ports due to the ongoing situation, warning that continued disruption could lead to heavy losses for Indian traders and impact farming communities.
“The Premium 1121 Basmati rice, which we used to export, is currently being held at the ports. If this situation continues, Indian traders will face significant losses. Our payments, ranging from Rs 2,000 crores to Rs 25,000 crores, are pending and have not been received, causing difficulties for the traders. The government is currently taking its own measures, and if the situation persists, farmers will also face problems in the future.“In response to the broader crisis, the government held an all-party meeting on Wednesday to assess the situation in West Asia. The meeting was chaired by defence minister Rajnath Singh and saw participation from senior opposition leaders as well as key Union ministers.Union home minister Amit Shah, Parliamentary affairs minister Kiren Rijiju, finance minister Nirmala Sitharaman, external affairs minister S Jaishankar, petroleum and natural gas minister Hardeep Puri and foreign secretary Vikram Misri were among those present.The ripple effects of the conflict are also being felt across the country’s workforce engaged in trade and logistics, with traders, businessmen, contractors and factory labourers facing disruption as transportation routes and payment systems slow down amid rising tensions in West Asia.According to a Crisil Ratings report, prolonged instability in the region could impact several Indian sectors, including basmati rice, fertilisers, diamond polishing, travel operators and airlines, all of which have significant exposure to West Asian markets.The report further cautioned that industries dependent on imported liquefied natural gas (LNG), such as ceramics and fertilisers, may face operational challenges in the near term and will need close monitoring.It also highlighted possible pressure on crude-linked sectors including downstream oil refiners, tyres, paints, speciality chemicals, flexible packaging and synthetic textiles if elevated energy prices persist.India imports around 85 per cent of its crude oil requirement and half of its LNG needs, with nearly 40–50 per cent of crude and 50–60 per cent of LNG shipments passing through the Strait of Hormuz.The report added that most shipping vessels have stopped using this route since March 1, 2026, citing heightened risks. A prolonged disruption, it warned, could tighten global crude and LNG supplies and push prices higher.Meanwhile, geopolitical tensions in West Asia remain elevated. Even as US President Donald Trump has claimed that negotiations with Iran are underway and the conflict may soon de-escalate, the Pentagon is expected to deploy troops from the 82nd Airborne Division to the Middle East as the war enters its fourth week.
