The ongoing conflict in West Asia has begun to significantly impact India’s export sector, particularly rice shipments to the Gulf region. With the crisis entering its sixth day, exporters are facing mounting uncertainty over payments from importers and rising demurrage charges as thousands of containers remain stuck across the supply chain.
According to exporters, more than 3,000 rice containers are currently stranded at Indian ports, in transit, or at destination ports in West Asia. The disruption comes at a critical time, as shipments to the Gulf region usually increase during the Ramadan period.
Countries such as Saudi Arabia, Iraq, the United Arab Emirates, and Iran are among the largest importers of Indian rice, especially basmati. Industry estimates suggest that nearly 2–4 lakh tonnes of rice are currently stuck at different stages of the export chain.
Dev Garg, Vice President of the Indian Rice Exporters Federation (IREF), said exporters are facing challenges at three critical points — Indian ports, shipments already in transit, and cargo awaiting clearance at destination ports. Exporters have requested government support, including waivers on port and demurrage charges, to mitigate losses.
“There is very little clarity on when the situation will stabilize. Some exporters with networks in other markets, including North America, are attempting to reroute their shipments,” Garg said.
Earlier, Satish Goel, President of the All India Rice Exporters Association (AIREA), estimated that nearly 2 lakh tonnes of basmati rice alone are currently stuck at Indian ports. India exports around 60 lakh tonnes of basmati annually, of which nearly 40 lakh tonnes are shipped to the Gulf region.
In response to the emerging crisis, Union Commerce and Industry Minister Piyush Goyal announced that the government has convened consultations with key ministries and trade stakeholders to assess the situation and safeguard India’s export supply chains.
An Inter-Ministerial Group (IMG) for Supply Chain Resilience has been formed to monitor developments and coordinate responses. The group includes representatives from the Department of Financial Services, Ministry of External Affairs, Ministry of Shipping, Ports and Waterways, Ministry of Petroleum and Natural Gas, and the Central Board of Indirect Taxes and Customs.
Exporters are also concerned about the potential impact on shipping costs. Any escalation involving Iran or the United Arab Emirates could push up bunker fuel prices and disrupt vessel availability, leading to sharp increases in container and bulk freight rates.
The industry has warned that rising insurance premiums and volatile freight costs could expose exporters to losses, especially those operating under fixed-price contracts. Exporters have been advised to exercise caution while signing new orders and to avoid unhedged positions amid the uncertain geopolitical situation.
India’s rice trade with Africa and the Middle East accounts for roughly half of the country’s total rice exports. Between April and December 2025, India exported about 3.9 million metric tonnes of rice to the Middle East and 7.16 million metric tonnes to Africa, underscoring the importance of these markets for the country’s agricultural export sector.
