New Delhi, June 18 -- India's basmati rice exports to West Asia are expected to recover in the coming months after the US and Iran signed a peace agreement that includes the reopening of the Strait of Hormuz, which handles a significant share of global energy and cargo shipments.

India's exports of basmati rice to West Asia had almost come to a standstill due to conflict-related shipping bottlenecks, higher freight costs and delays in contract execution. The Gulf region accounts for 60-70% of India's basmati rice exports, valued at about $6 billion annually.

"Greater stability in the region is expected to improve trade flows and revive demand from key Gulf markets, providing a much-needed boost to India's basmati exports in the months a...