Basmati rice exports to Iran decreased
India Iran Trade: India trades extensively with the countries of the Middle East. Along with business, it also gives great importance to diplomatic relations. Be it Sunni country Saudi Arabia or Iran. But in recent times there is a continuous decline in exports to Iran. Exports have been continuously falling for the last one year. There can be many reasons for this. According to experts, in view of the geopolitical tension in the Middle East, i.e. the war with Israel, Hamas and the support of Middle East countries by countries like Russia and China, it is going to create problems for India. Russia and Iran openly support Hamas. Whereas India is adopting a balanced approach.
Decrease in export of Basmati rice
India’s exports to Iran have seen a decline since November last year. In 2023, shipments to Iran declined by nearly 44 percent to $888 million during January-October. The main reason for such a huge decline in exports is the decline in exports of basmati rice as well as other food items like high quality tea and sugar, fresh fruits and boneless beef. Basmati rice exports witnessed a 42 percent decline to $553 million in the first 10 months of 2023
Why did exports to Shia country Iran decrease?
Actually, India exports Basmati rice to Iran on a large scale. 62 percent of the total exports go to Iran. In fiscal year 2023, India sold one-fifth of the total Basmati rice to Iran.
Businessmen selling goods to Iran said that America has imposed sanctions on the countries of the Middle East. Especially Iran is a traditional enemy of America. The friendship between India and Iran is very good, but America is also a friend of India, hence India is caught between the enmity of America and Iran.
Amidst all this, traders selling goods to Iran said that India had stopped buying crude oil from Iran due to US sanctions on the Middle Eastern country. Due to this, Iran’s rupee reserves have decreased. Due to US sanctions on Iran, India is facing many difficulties in doing free trade with it and hence exports are falling.
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