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\u00a0India\u2019s basmati rice exports \u200bto Iran have slowed to a near standstill amid the protests gripping the Gulf \u200ccountry, with suppliers wary of new deals due to the risk of non-payment and potential additional U.S. tariffs, trade officials said.<\/strong><\/p>\n U.S. President Donald Trump\u00a0said on Monday that any country trading with Iran would face a 25% tariff on its commerce with the U.S., a move exporters say has made Indian suppliers even more reluctant to \u200csign new contracts with Iranian buyers.<\/p>\n \u201cThe proposed 25% levy under the Trump framework adds \u200ban additional challenge to the Indian basmati rice sector,\u201d said Akshay Gupta, head of bulk exports at KRBL Ltd\u00a0a leading rice exporter.<\/p>\n India is Iran\u2019s largest rice supplier, with the staple accounting for nearly \u200dtwo-thirds of all Iranian imports from the country.<\/p>\n \u201cWe\u2019re worried about the payments for rice shipped in the last two months,\u201d said a New Delhi-based exporter, who declined to be named.<\/p>\n \u201cIn some cases, buyers report they did not receive the \u2060full quantity; in others, they have fled the country because of the ongoing protests,\u201d the exporter said.<\/p>\n<\/div>\n The \u200dcurrent protests began last month in Tehran, with shopkeepers condemning the rial currency\u2019s free fall.<\/p>\n Unrest has spread nationwide amid deepening distress \u00a0over \u200ceconomic \u200cprivations arising from rocketing inflation driven by mismanagement and Western sanctions, and curbs on political and social freedoms.<\/p>\n Importers have conveyed their inability to honour existing commitments and remit payments to India, creating heightened uncertainty for exporters, Dev Garg, vice president of the Indian Rice Exporters Federation (IREF), said in a statement.<\/p>\n India\u2019s Ministry of \u2060Commerce and Industry declined to \u2060comment.<\/p>\n Iran previously supplied foreign \u200bexchange to food importers at a subsidised rate, but it has now suspended that provision, effectively making imports much more expensive for buyers, said Vijay Setia, a top rice exporter.<\/p>\n<\/div>\n India\u2019s exports to Iran, largely food items such as \u200drice, fell to $1.24 billion in the 2024\u201325 fiscal year ending March from $3.51 billion in 2018\u201319, while imports declined to $440 million from a peak of $13.53 billion in 2018\u201319, Indian government data showed.<\/p>\n \u201cIran\u2019s currency has crashed, and exporters are worried whether shipments \u200balready sent will be cleared and whether buyers can pay,\u201d said \u200dAjay Sahai, director general of the Federation of Indian Export Organisations.<\/p>\n Major Indian exports to Iran include basmati rice and pharmaceuticals, while \u200bimports consist mainly of fresh and dried fruits.<\/p>\n<\/div>\n<\/div>\n