Rice millers are the worst hit as constantly increasing stocks are compelling them to sell the rice at cheaper rates.

By ETV Bharat English Team

Kota:The ongoing hostilities between the US, Israel and Iran have taken a toll on Basmati rice exports from India. Those running the mills are hit the most as constantly increasing stocks are compelling them to sell the rice at cheaper rates. Consequently, the price of all varieties is learnt to have fallen by Rs 700 to Rs 800 rupees per quintal. Exports worth Rs 10 crore daily have ground to a halt from Hadoti alone.

One of the exporters, Pradeep Pokra, disclosed that there are 35 mills in the Hadoti division, of which Bundi has the most, followed by Kota and Baran. “Rice from both Madhya Pradesh and Rajasthan is processed here, and most of it is then exported. These mills process 1,500 metric tonnes of Basmati daily,” he said.

Meanwhile, Manoj Jain, who owns Vipin Industries, disclosed that the millers are suffering significant losses. “They cannot stop rice production and have to keep the mills running continuously. Their stockpiling costs are also increasing. Now, they have to sell their produce at low prices, incurring a loss of up to Rs 8 per kg. This has eliminated profits, and costs are increasing,” he pointed out.

According to Pokra, shipments that are to be sent to Iran will not be insured. “In such a situation, if any attack takes place during the war or the goods get damaged due to any other reason, then there is no security of payment. Due to this, exporters are scared. However, goods will be sent without insurance to honour the deals made,” he said.

He explained that if the goods sent are insured, neither the exporter nor the buyer suffers any loss.

Sources said that there is a lot of stock lying at Mundra and Kandla ports that has to be exported. The situation is such that there is no storage space available. This has led to exporters not ordering fresh stock from the millers.

The war started around Holi when most of the mills were shut. Sources say the real effect of the war will be visible only by next week. They added that there are many big exporters who are buying rice at cheap rates and dumping it in their own godowns.

In this scenario, it is the millers who are in a helpless position. They cannot stock the produce, and at the same time, they have to pay for the paddy procured from the market along with the labour costs. There are other expenses like packaging and running the mill as well.

They say that with their export cycle coming to a standstill, it’s becoming increasingly difficult to carry on with operations. They disclosed that it is the peak consumption season in Iran as Ramadan is underway. Although the consumers in Iran had already picked up a significant amount beforehand, the remaining consignments are yet to be loaded and sent.

Sources disclosed that around four to five lakh metric tonnes of rice is shipped from Hadoti and only 40% of this shipment has been done so far.

They added that Afghanistan recently signed a rice import deal with India to the tune of 150,000 metric tonnes. But even that has been affected by the ongoing war, as the goods destined for Afghanistan are first shipped to Iranian ports and then transported by road. India also exports Basmati rice to other Gulf countries and those in the Middle East.

Pokhra said the millers had suffered in 2025 also, and reduced procurement this year will see the mills operating only till May. The silver lining is that Haryana and Punjab have purchased a significant amount of paddy from Hadoti this year.

Published Date: March 8, 2026