India’s rice export performance witnessed a decline in FY26, reflecting the impact of geopolitical disruptions in key overseas markets, particularly across the Middle East, as per PTI report.
According to commerce ministry data, rice exports dropped by 7.5% year-on-year to $11.53 billion in 2025–26. The decline was more pronounced in March, when shipments fell 15.36% to $997.53 million.
The contraction comes after a strong performance in the previous financial year. In 2024–25, India exported around 20.1 million tonnes of rice valued at $12.5 billion, reaching over 172 countries.
The primary factor behind the slowdown has been disruption in exports to Middle East markets, including Iran, the UAE, Saudi Arabia and Oman.
The ongoing conflict involving the US, Israel and Iran has affected trade flows, particularly in terms of logistics and financial transactions.
Iran, which remains the largest destination for India’s basmati rice, has seen increasing pressure on order flows, payment cycles and shipping schedules.
As per report, several importers have expressed difficulty in fulfilling existing commitments and processing payments, adding uncertainty for exporters.
Despite export challenges, India continues to maintain a strong position in global rice production.
The country produced approximately 150 million tonnes of rice in 2024–25 across nearly 47 million hectares, accounting for about 28% of global output.
Productivity has also improved over time. Average yields have increased from 2.72 tonnes per hectare in 2014–15 to around 3.2 tonnes per hectare in 2024–25.
This growth has been supported by the adoption of improved seed varieties, better farming techniques and expanded irrigation infrastructure.
Read More: India Unemployment Seen at 7% in 2026; Inflation May Rise to 4.5%: Moody’s!
While external disruptions have weighed on export performance, India’s robust production base and improving agricultural efficiency continue to support its position as a leading player in the global rice market.
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Published on: Apr 24, 2026, 10:06 AM IST
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