KRBL, LT Foods, Kohinoor Foods: Rice stocks in focus as Trump announces 25% tariff on Iran's trade partners; details to know

“Effective immediately, any country doing business with the Islamic Republic of Iran will pay a tariff of 25% on any and all business being done with the United States of America,” the US president said in a post on Truth Social. Tariffs are paid by US importers of goods from those countries. Iran has been heavily sanctioned by Washington for years.

“This order is final and conclusive,” Trump said without providing any further detail. Top export destinations for Iranian goods include China, the United Arab Emirates and India.

What you need to know amid the Iran crisis

The Indian Rice Exporters Federation (IREF), in its latest article (January 12, 2026), as per news reports, said a sharp collapse of Iran’s currency, leading to payment delays, has affected India’s basmati rice exports, leaving consignments worth nearly ₹2,000 crore stranded at major ports such as Kandla and Mundra. The crisis has raised concerns for farmers, millers and exporters, particularly in Punjab and Haryana, and could dent India’s overall basmati rice export performance this financial year.

Iran’s currency, the rial, has plunged to a historic low of around 1.3 million against the US dollar. The steep depreciation has triggered high inflation and acute foreign exchange shortages in the country, forcing the Iranian government to withdraw subsidies on food imports. As a result, Iranian importers are struggling to arrange payments, prompting Indian exporters to halt fresh shipments, the article added.

Iran, the second-largest basmati rice importer

The article further said that Iran is India’s second-largest buyer of basmati rice after Saudi Arabia, importing around 12 lakh tonnes annually, valued at over ₹12,000 crore.

Parboiled (sella) basmati rice varieties are particularly popular in the Iranian market. "Industry sources said that with payments uncertain and clearance delayed, exporters have chosen to hold back consignments already moved to ports, rather than risk defaults," the article said.

Latest trade data

According to trade data, Iran accounted for exports worth ₹6,374 crore in 2024–25. Prolonged disruption could result in a 10–15% decline in India’s overall basmati rice exports this year, industry estimates suggest.

What lies ahead?

Exporters point to intensifying competition from Pakistan, which has introduced new basmati varieties in key global markets. While the situation presents immediate risks, exporters see some scope for long-term adjustment. Diversifying markets, particularly in Europe, where demand for basmati is rising, could help reduce dependence on a few large buyers.