India’s rice exports fell in the first four months of 2026 as the US-Israeli war with Iran disrupted shipments of premium basmati rice to Gulf markets including Saudi Arabia, the UAE, Qatar and Iraq, government officials said on Wednesday.
The disruption has delayed rice cargoes moving through regional shipping routes and stalled new export deals with Gulf buyers, as higher insurance and freight costs linked to the conflict weigh on trade flows through the Strait of Hormuz.
India’s basmati rice exports fell 7 per cent during the January-April period to 2.3 million metric tons, with shipments to markets including Iran declining, according to the officials. Saudi Arabia overtook Iran as India’s biggest basmati rice market last year, government figures show.
India, which accounts for more than 40 per cent of world rice exports, usually ships more than the combined exports of the next three biggest suppliers – Thailand, Vietnam and Pakistan.
Its declining exports will add to pressure on Indian prices, which have fallen more than 5 per cent this year following a record rice harvest.
Iran war puts pressure on Indian rice exporters
The country’s rice exports during January to April fell 1.3per cent from a year ago to 8.39 million metric tons, the officials said. They declined to be named because they were not authorised to speak to the media.
Exports of basmati rice fell 7per cent during the period to 2.3 million metric tons, as shipments to markets, including Iran, declined. Non-basmati rice exports edged up to 6.09 million tons from 6.03 million tons a year earlier.
One exporter based in New Delhi, who also asked not to be named, said shipments were expected to remain below typical levels until the Iran war ends.
Rice cargoes bound for Iran, Iraq, Qatar and Saudi Arabia remain delayed in transit because of the conflict, leading buyers and exporters to hold back on new deals, the exporter said.
India mainly ships non-basmati rice to markets such as Bangladesh, Benin, Ivory Coast, Guinea and Cameroon, while its premium basmati rice predominantly goes to buyers in Saudi Arabia, Iraq, Iran and the UAE.
Gulf rice markets
Iran was India’s biggest market for basmati rice until last year when Saudi Arabia surpassed it, according to government figures.
Shipping insurance and freight costs have risen since US-Israeli airstrikes began the war on Iran at the end of February, leading to disrupted maritime traffic through the Strait of Hormuz.
That has weighed on demand for non-basmati rice from African buyers, an exporter based in Kakinada, southeastern India, said.
India competes with Thailand, Vietnam, Myanmar and Pakistan in the global rice market.
© Copyright 2025 The SSResource Media.
All rights reserved.