Indian Rice Exports Impacted by West Asia Crisis

14-Aug-2026 11:41 AM

New Delhi: Indian rice exports are being partially affected by the ongoing Iran-US tensions in West Asia and the uncertainty surrounding the movement of commercial vessels through the Strait of Hormuz. Countries in the Middle East, West Asia, and the Gulf region are the primary buyers of Indian Basmati rice, yet selling rice in these markets is currently proving difficult.

However, the pace of non-Basmati rice export shipments from India remains normal. Despite disruptions in Basmati supplies and high shipping costs, India's total rice exports rose by 1.7 percent to reach $3.82 billion during the first four months of the current fiscal year (April–July 2026).

With the Strait of Hormuz shipping route effectively closed, exporters are currently forced to utilize the ports of Sohar and Muscat in Oman and Khor Fakkan in the United Arab Emirates (UAE) for Basmati rice shipments.

It is noteworthy that India is the world's leading rice exporter. In July 2026, total rice exports from India fell to $860 million—a 6.6 percent decline compared to export earnings in July 2025—as buyers in the Middle East and West Asia exercised considerable caution. In contrast, rice exports had surged by 16 percent to exceed $1 billion in June, driven by the clearance of shipments that had been held up at Indian ports for the preceding three to four months.