Chandigarh, March 2 -- Rice exports from India are under threat amid escalating military tensions in West Asia, with exporters flagging concerns about payment delays and shipping disruptions to Iran, Afghanistan and several other Gulf countries. The exposure is especially high for basmati rice, as nearly 50% of India's exports go to five West Asian countries -- Saudi Arabia, Iran, Iraq, the UAE and Yemen, making the trade vulnerable to prolonged instability. In the aftermath of the United States and Israel launching an attack on Iran on Saturday, triggering fears of wider regional instability and possible restrictions on shipping through the Strait of Hormuz, the Indian Rice Exporters Federation (IREF) on Sunday advised its members to avoid entering into new 'cost, insurance and freight' (CIF) commitments to Iran and Gulf destinations. Under CIF agreements, sellers bear the costs, insurance and freight for cargo transported via waterways until it reaches the buyer's port. The federation advised exporters to instead conclude sales on 'free-on-board' (FOB) terms wherever feasible, so that freight, insurance and related risks remain with international buyers. It warned that developments in Iran and the United Arab Emirates could immediately impact bunker fuel prices and disrupt the availability of container and bulk vessels. "In such circumstances, container and bulk freight could increase sharply at short notice, exposing exporters to losses on fixed delivered-price contracts," the federation said. It also cautioned that insurance premiums could rise steeply if the geopolitical situation worsens and urged exporters to exercise restraint while concluding new orders and avoid open-ended, unhedged positions. Basmati rice is the most vulnerable segment, with India being the world's leading exporter of the cereal grain, commanding over 70% of global production, according to APEDA data said. India exported around six million tonnes of basmati rice, worth nearly Rs.50,000 crore, in 2024-2025, with demand primarily driven by West Asian countries, APEDA data said. With basmati wholesale prices already rising by 10-15% over the past month and Iran being a key market, the federation said that it heightened volatility in prices in the coming days. Punjab and Haryana are among the states to be hit the hardest, with the two states contributing nearly 75% of the total premium aromatic basmati grain exports....