US-Iran row may hit basmati business

NEW DELHI: India's

basmati rice exports to Iran

are likely to be affected because of rising tensions between the US and the Islamic republic, with domestic trade body AIREA asking exporters not to undertake any shipment till the situation improves.

Iran is an important export destination for India and if shipments get affected then it will impact domestic prices and in turn farmers' income, the

All India Rice Exporters Association

(AIREA) said. During the last fiscal, India exported

basmati rice

worth Rs 32,800 crore, of which nearly Rs 10,800 crore worth rice was shipped to Iran.

"In the current situation, it is not possible to export basmati rice to Iran. We have issued an advisory to our members to be cautious and not to execute further shipments till the situation gets clearer," said AIREA president Nathi Ram Gupta. The shipments placed by the Iran have also been kept on hold. "Some quantity is lying at ports," Gupta said.