KRBL Limited has secured a favorable outcome in its appeal against customs penalties, with the appellate authority setting aside orders that had imposed redemption fines and penalties under the Customs Act, 1962.

Appellate Authority Allows Appeals

The appellate authority has passed orders allowing KRBL's appeals and has set aside two specific orders issued by the Joint Commissioner of Customs, Noida. This development represents a significant legal victory for the company in its customs-related proceedings.

Background of the Case

The company had previously informed stock exchanges about these customs orders through communications dated May 09, 2025, and August 27, 2025. The original orders had levied redemption fines and penalties under applicable provisions of the Customs Act, 1962, prompting KRBL to file appeals before the appropriate appellate authority.

Next Steps for Refund Process

Following the successful appeal outcome, KRBL Limited will now initiate procedures to seek refund of the pre-deposits made during the appellate proceedings. The company has indicated that it will begin the refund process in accordance with applicable regulations and procedures.

Regulatory Compliance

This disclosure has been made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information was communicated to both BSE Limited and National Stock Exchange of India Limited on January 23, 2026, ensuring compliance with stock exchange notification requirements.

The successful resolution of these customs penalty matters removes a potential financial burden from the company and demonstrates effective legal strategy in handling regulatory challenges.

Indian basmati rice exporters are grappling with fresh uncertainty as US President Donald Trump threatens 25% tariffs on countries conducting business with Iran. KRBL , a major basmati rice exporter, has revealed its significantly reduced exposure to the Iranian market while highlighting ongoing industry challenges.

Sharp Reduction in Iran Business

KRBL's Iran-related business has contracted dramatically over recent years due to sanctions and market uncertainties. Akshay Gupta, Business Head – Bulk Exports at KRBL, disclosed the company's current position compared to its historical exposure.

Most of KRBL's remaining Iran-linked trade now flows through the United Arab Emirates, where Iranian importers operate trading companies to facilitate transactions.

Iran Remains Key Market Despite Challenges

Despite the risks, Iran continues to represent a crucial market for Indian basmati rice exports. Dev Garg, Vice President at the Indian Rice Exporters Federation (IREF), emphasized Iran's consistent position as India's second-largest rice market.

India's rice exports to Iran demonstrate the market's significance:

According to IREF data, more than 99% of rice exported to Iran consists of basmati varieties, underscoring the specialized nature of this trade relationship.

Immediate Market Impact

The US tariff threat has already triggered immediate consequences in domestic basmati markets. Price volatility emerged swiftly following Trump's announcement, affecting exporters and traders across India.

Payment Disruptions Compound Challenges

Beyond pricing pressures, Indian exporters face significant payment delays from Iranian buyers. Internal disruptions within Iran, including protests and currency weakness, have severely affected the payment system. Industry sources report that payments worth over ₹2,000 crore remain stuck in Iran due to disruptions in central trading areas and the weakening Iranian currency.

Gupta noted that these internal Iranian disruptions have begun affecting the payment system, creating additional uncertainty for exporters who have maintained business relationships in the region. The combination of geopolitical tensions, payment delays, and currency instability presents a complex challenge for Indian basmati exporters navigating this crucial but volatile market.