IREF issued an Advisory in view of Middle East Crisis

NEW DELHI: Indian Rice Exporters Federation (IREF) has issued an advisory to its members in
view of the deteriorating situation in the Islamic Republic of Iran and parts of the Gulf, and
reports that movements through the Strait of Hormuz could be restricted. Members are advised
not to undertake new CIF (cost, insurance and freight) commitments for these destinations and,
wherever feasible, to conclude sales on FOB (free on board) terms so that freight & insurance
and related risks remain with the international buyer.

Developments in Iran and the United Arab Emirates can have an immediate impact on bunker
(ship fuel) prices and, if oil prices rise, may also disrupt container and bulk vessel availability.
In such circumstances, container and bulk freight could increase sharply at short notice,
exposing exporters to losses on fixed delivered-price contracts. The situation may also lead to
steep increase in insurance premiums. Exporters are also advised to exercise restraint while
concluding new orders and to avoid open-ended, unhedged positions.

India’s rice trade with Africa and the Middle East together accounts for roughly half of nationa
rice exports. During April–December 2025, exports to the Middle East totalled 3.90 million
MT and to Africa 7.16 million MT, as detailed below. The five leading basmati destinations
are in the Middle East—Saudi Arabia, Iran, Iraq, UAE and Yemen—are therefore among the
most directly affected and account for about 50% of all basmati rice exports from India.

IREF is monitoring developments closely and is in touch with exporters whose consignments
are in transit or awaiting clearance at destination ports. Any member facing such issues may
seek the Federation’s assistance. With basmati wholesale prices up 10–15% over the past
month and Iran being a key market, heightened volatility in basmati prices is expected in the
coming days. The Federation will issue further advisories as the situation evolves.