6% Decline in Indian Rice Exports in April

19-May-2026 02:00 PM

New Delhi. Due to ongoing tensions in West Asia and disruptions to shipping traffic through the Strait of Hormuz—which adversely affected Basmati shipments—India's total rice exports witnessed a 6 percent decline in April 2026, specifically in terms of Basmati varieties. It is noteworthy that, in terms of export volume, rice remains India's most prominent agricultural commodity.

According to available data, rice export earnings during April 2026 fell by 6 percent compared to April 2025, settling at $1.01 billion. The ongoing tensions and disputes between Iran and the United States have significantly disrupted the export of long-grain aromatic Basmati rice to countries across the Middle East, West Asia, and the Gulf region—particularly to Iran and Saudi Arabia. India continues to hold its position as the world's largest exporter of rice.

Traders and exporters state that Indian rice is currently facing numerous serious challenges on the export front. An atmosphere of sluggishness and weakness prevails in the global rice market, and export performance remained quite lackluster in April. The Strait of Hormuz remains closed, and there is a looming threat that a fierce conflict between Iran and the U.S. could erupt at any moment. Meanwhile, the threat posed by Houthi rebels along the Red Sea shipping lanes continues to escalate.

Consequently, there are apprehensions that India's exports to the United States and Europe could also be adversely affected. Shipping and insurance companies are raising their rates. Although a safer alternative route—via the southern tip of Africa through the 'Cape of Good Hope'—remains open, it is a significantly longer journey that entails higher costs and extended transit times.

Shipping costs for the Gulf region—which previously stood at a mere $500 per 25-ton container—surged in March 2026, reaching a peak of $5,000 per container.