India’s rice exports recorded a marginal decline during the January–April 2026 period, mainly due to disruptions in premium basmati rice shipments caused by the ongoing conflict involving Iran and regional tensions in West Asia.
India remains the world’s largest rice exporter, accounting for more than 40% of global rice trade. However, recent geopolitical developments and higher shipping-related costs have impacted trade flows to major importing countries in the Gulf region.
According to government officials, India exported 8.39 million metric tonnes of rice during the first four months of 2026, slightly lower than the corresponding period last year.
The decline was largely driven by weaker basmati rice exports, which fell around 7% year-on-year to 2.3 million metric tonnes. Shipments to key markets such as Iran witnessed a slowdown amid disruptions in maritime logistics and trade routes.
In contrast, non-basmati rice exports remained relatively stable, rising marginally to 6.09 million metric tonnes compared with 6.03 million tonnes during the same period last year.
Exporters indicated that rice consignments headed to countries including Iran, Iraq, Qatar and Saudi Arabia have faced delays due to disruptions in shipping routes and higher freight-related risks.
The conflict in West Asia has reportedly increased insurance and transportation costs, particularly around the Strait of Hormuz, a critical maritime trade route. The uncertainty has led both buyers and exporters to delay fresh purchase agreements until shipping conditions stabilise.
Industry participants expect export activity to remain subdued in the near term if geopolitical tensions continue.
The slowdown in exports comes at a time when India has harvested a record rice crop, resulting in ample domestic supplies. As export demand moderates, local rice prices have remained under pressure and have reportedly declined by more than 5% so far this year.
India primarily exports non-basmati rice to countries such as Bangladesh, Benin, Guinea, Ivory Coast and Cameroon, while premium basmati varieties are largely shipped to Saudi Arabia, Iraq, Iran and the UAE.
Saudi Arabia recently overtook Iran as the largest importer of Indian basmati rice.
India continues to compete with major rice-exporting nations including Thailand, Vietnam, and Pakistan in the international market. Any prolonged disruption in exports could influence global rice trade dynamics as well as domestic pricing trends.
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The decline in India’s rice exports during early 2026 reflects the impact of geopolitical tensions and logistical disruptions in West Asia, particularly on premium basmati shipments. Market participants will closely monitor shipping conditions and regional developments for signs of recovery in export demand.
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Published on: May 28, 2026, 10:59 AM IST
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