India’s rice exports, the country’s largest agricultural export segment, continued to face pressure from the ongoing West Asia conflict, with shipment values declining 6% year-on-year in April 2026 amid severe disruptions to Gulf-bound trade.
According to trade data, India exported rice worth $1.01 billion in April 2026, compared to the same period last year. The decline was largely driven by disruptions in exports of premium Basmati rice to major Gulf markets such as Iran and Saudi Arabia, as escalating tensions in the Middle East affected shipping routes through the Red Sea and the Strait of Hormuz.
Exporters said freight costs for rice shipments to Gulf destinations have surged nearly tenfold since March 2026. Ocean freight rates for a 25-tonne container reportedly increased from around $500 to nearly $5,000, making exports commercially unviable for many traders.
Ranjit Singh Jossan, Managing Director of Jossan Grains in Punjab, said India’s rice export sector is facing serious challenges due to weakening global market conditions and mounting logistical disruptions. Exporters added that the ongoing conflict has sharply increased insurance premiums and shipping risks across key trade corridors.
The Middle East remains a crucial destination for India’s aromatic Basmati rice, accounting for nearly 70% of total Basmati exports. However, according to APEDA data, rice exports to major Middle Eastern markets — including Saudi Arabia, Iran, Iraq, the UAE, Kuwait, and Oman — fell by 49% in FY26 compared to the previous year.
Industry officials noted that while Basmati exports have been significantly impacted, non-Basmati rice shipments to Africa, Europe, and the United States have remained relatively stable. However, exporters said price realisations for non-Basmati rice have weakened due to global oversupply.
B.V. Krishna Rao, President of the Rice Exporters Association, said non-Basmati shipments have not faced major logistical disruptions so far, though lower international prices continue to pressure margins.
Overall, India’s combined exports of Basmati and non-Basmati rice declined 7.5% year-on-year to $11.53 billion in FY26.
Despite the current challenges, the United States Department of Agriculture (USDA) expects India to retain its position as the world’s largest rice exporter. In its May 2026 rice outlook, the USDA projected global rice exports to reach a record 63.1 million tonnes in 2027, with India expected to contribute 25 million tonnes, or nearly 40% of global trade, supported by ample exportable supplies and competitive pricing.
The USDA also projected India to remain the world’s largest rice producer for the third consecutive year, ahead of China, although overall production may moderate due to reduced acreage and a return to normal rainfall patterns.
