Rice Exports Dip Amidst Global Tensions, Impacting Major Markets

India's rice exports have experienced a significant downturn, dropping by 7.5% to USD 11.53 billion in the fiscal year 2025-26. This decline is primarily attributed to a reduction in shipments headed to crucial markets, particularly within the Middle East.

Commerce ministry data highlights that the exports in March alone saw a 15.36% decrease, plunging to USD 997.53 million. The geopolitical tensions, notably the US-Israel-Iran conflict, have adversely impacted trade, causing delays in order flows, payment cycles, and ship schedules.

With Iran being India's foremost export destination for basmati rice, its instability further complicates the scenario as importers struggle to fulfill commitments and remit payments. Despite these challenges, India remains a leading global producer and exporter of rice, having exported 20.1 million tonnes valued at USD 12.5 billion in the previous year, 2024-25.