Basmati prices may fall 5–10% on export hit
Kolkata: Iran's announcement of closing the Strait of Hormuz to shipping is expected to impact both the basmati rice and tea exports from India. Basmati rice exporters fear prices could decline 5-10% as shipments to West Asia face disruptions."After the interim (US-Iran) peace deal was announced, exporters started buying basmati rice in good quantities for shipment to the Middle East and prices surged 15-20%. But this sudden announcement will bring down prices," said Dev Garg, vice-president, Indian Rice Exporters Federation.Also Read: Nearly 12 ships carrying fertiliser cross Strait of HormuzNearly 60,000 tonnes of basmati rice destined for West Asian markets is currently in transit.Five of the leading destinations for Indian basmati rice are in West Asia - Saudi Arabia, Iran, Iraq, the UAE and Yemen. Together, they account for about 50% of India's total basmati rice exports and are among the markets most directly affected by the disruption. India produces about 7.2 ...