Planned new U.S. sanctions on Iran and the UAE's halt on Tehran trade could severely disrupt Indian exports of rice, tea and pharmaceuticals to Iran, which have been largely routed through Dubai's port in
Planned new U.S. sanctions on Iran and the UAE's halt on Tehran trade could severely disrupt Indian exports of rice, tea and pharmaceuticals to Iran, which have been largely routed through Dubai's port in recent years, Indian exporters said on Monday.
India has been among Iran's five largest trading partners, though bilateral trade has fallen by more than 90% from its 2018/19 highs of $17 billion, with exports now limited mostly to goods exempted on humanitarian grounds.
Indian exporters fear U.S. President Donald Trump's proposed "economic D-Day" plan, likely to be unveiled later on Monday, could further squeeze trade weakened by sanctions, banking caution and shipping constraints.
The United Arab Emirates last week suspended all trade activities, exchanges and financial transactions with Iran until further notice.
"We are already seeing indications that transactions and payment mechanisms traditionally routed through the UAE are exploring alternative jurisdictions," said Dev Garg, vice president of the Indian Rice Exporters Federation, suggesting Turkey as an alternative.
EXPORTERS COULD FACE HIGHER FREIGHT AND OTHER COSTS
In the first half of 2026, India exported $383.11 million of rice to Iran - the second-largest overseas market for premium rice, including long-grained basmati.
"Any prolonged disruption in
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