Indian basmati rice exports to Iran have witnessed a sharp increase in the last couple of months mainly because of a slowdown in rice imports from neighboring Pakistan.

Iran had raised tariffs and restrictions on land shipments to counter opium smuggling that have particularly affected trade with Pakistan and made Indian rice more competitive.

Basmati rice exports to Iran have risen  225,000 MT in the year to October, up from 60,000 MT the previous year as contracts have already been signed for 125,000-150,000 MT of basmati rice exports for the next year.