How can Israel-Iran war harm Indian Basmati rice? Crisil's report reveals

News Topical, Digital Desk : The tension between Israel and Iran in the Middle East is at its peak and due to the conflict between these two countries, its effect is also being seen in India. In fact, the ongoing uncertainties in the Middle East are likely to have a significant impact on the Indian Basmati rice sector.

What could be the impact?

According to Crisil report, Iran and Israel account for 14 per cent of Indian basmati rice exports in FY25 and are expected to have limited impact due to the current tensions.

India's ability to export to other countries in the Middle East, the US and Europe mitigates demand risks, the report said. But a prolonged crisis could lead to potential delays in payments in these regions.

Which other areas could be affected

However, apart from Indian Basmati rice, other sectors like fertilizers and polished diamonds may also see some impact, but it is expected to be less compared to the Basmati rice sector.

Israel accounted for nearly 4 percent of total diamond exports last year, making Israel one of the main trading hubs for domestic diamond polishers. However, the tensions could push polishers to look for alternative trading hubs such as Belgium and the United Arab Emirates.

Israel accounted for nearly 4 percent of total diamond exports last year, making Israel one of the main trading hubs for domestic diamond polishers. However, the tensions could push polishers to look for alternative trading hubs such as Belgium and the United Arab Emirates.

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