India’s rice exports fell 7.5 per cent year-on-year to USD 11.53 billion in FY25–26, with shipments in March alone declining 15.36 per cent to USD 997.53 million, according to the Ministry of Commerce and Industry.
The decline was driven largely by a drop in exports to key West Asian markets, including Iran, the United Arab Emirates, Saudi Arabia and Oman, where trade flows have been disrupted due to tensions linked to the US-Israel-Iran conflict.
Iran, the largest buyer of Indian basmati rice, has been at the centre of the disruption. Exporters are facing delays in payments, order uncertainties and shipping challenges as importers struggle with financial and logistical constraints. Industry feedback indicates that some buyers are unable to honour existing contracts or process payments, adding to exporter concerns.
Despite the recent slowdown, India’s rice export base remains strong. In FY2024–25, the country exported 20.1 million tonne of rice worth USD 12.5 billion to over 172 countries.
On the production side, India continues to be a leading global producer, with output estimated at around 150 million tonnes in 2024–25 from nearly 47 million hectare, about 28 per cent of global production. Productivity has also improved over the years, with average yields rising from 2.72 tonne per hectare in 2014–15 to around 3.2 tonnes per hectare in 2024–25, supported by better seeds, improved farm practices and expanded irrigation.
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