Punjab News: Punjab Farmers Impacted By Israel Iran War! Check How?

Punjab News: The ongoing conflict between Iran and Israel is severely affecting basmati rice exports from Punjab, causing a significant decline in both demand and prices. With Iran being a key buyer of Indian basmati, its decision to halt imports from October 21 to December 21 to support its local crop has led to a sharp fall in orders from the region.

Plummeting Prices and Farmer Concerns

In the wake of this import ban, Indian insurance companies have also stopped covering exports to Iran, which has further exacerbated the uncertainty for rice exporters. As a result, exporters have drastically reduced their orders, leading to a noticeable drop in basmati prices. Farmers in Punjab are feeling the impact, with prices of Basmati 1509 variety plunging by nearly Rs 800 per quintal in recent weeks.

Punjab, which accounts for 40% of India’s Rs 48,000-crore basmati exports, is witnessing the brunt of this market disruption. Many farmers and exporters fear this trend could worsen as more rice varieties, including the popular PUSA-1401 and 1121, start arriving in grain markets later this month.

Iran’s Key Role in India’s Basmati Market

Iran has been a crucial market for Indian basmati, with around 25% of the total basmati exports being sent to the country. Last year, exporters also faced challenges when insurance firms stopped covering shipments bound for Saudi Arabia, and the current situation with Iran is adding to their woes.

While short-duration basmati varieties like 1509 are already seeing price drops, the arrival of the 1718 variety in the Majha region’s grain markets has sparked further concern. The first stocks of the 1718 variety were sold for Rs 3,200 per quintal, significantly lower than the Rs 4,500 offered last year.

With more rice varieties due to arrive later in the month, farmers and exporters fear that prices could continue to fall if the geopolitical situation and trade restrictions persist.

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