Chamaraj Savadi / TNN

Koppal/Raichur: The ongoing West Asia conflict has dealt a severe blow to India’s rice exports, leaving millers in key production belts grappling with unsold stock and mounting financial burden.

Shipments that typically move out within three to four months of production — harvested during Dec-Jan — have now been stalled, with consignments stranded at ports and several truckloads returning undelivered.

Raichur’s rice milling sector has been hit particularly hard, with production dropping by nearly 50% due to the export freeze.

Having already procured paddy from farmers and cleared payments, mill owners are now struggling to manage operational costs, including wages and electricity bills.

Karnataka has at least 4,000 rice mills, many of which are under stress.

Millers say the West Asia crisis has triggered a double whammy: While large quantities of rice remain unsold, a fresh crop is expected to arrive in about a month, forcing mill and godown owners to clear existing inventory under duress.

The impact is particularly visible in the Tungabhadra command area districts of Koppal, Vijayanagara, Ballari and Raichur, well-known for the export-quality Sona Masuri variety.

In Koppal district’s Gangavathi, considered a major paddy hub, traders say a significant portion of the Jan harvest remains unsold, even though cultivation was relatively lower this season due to ongoing crest gate works at the Tungabhadra reservoir.

Prices have also taken a hit. “Old Sona Masuri rice is selling at Rs 5,400–Rs 5,600 per quintal, while new rice is cheaper by about Rs 200,” said Koppal-based trader Sanjay Patil.

Industry representatives warn that prolonged disruption could deepen the crisis. Savitri Purushottam, state president of the Rice Mill Owners’ Association, said sustaining mill operations and paying workers has become increasingly difficult. Former Gangavathi MLA and rice mill owner Paranna Munavalli echoed the concern, saying exports can resume only if the conflict ends soon, failing which losses will mount.

The industry, which typically sees monthly transactions of around Rs 200 crore, has suffered a major setback. Around 95 rice mills in Raichur city alone were exporting to Arab nations, including UAE, African countries, Bangladesh, and Sri Lanka, but all that trade has now come to a complete halt.

Large quantities of Sona Masuri, Basmati and RNR varieties are lying unsold in warehouses, forcing mills to scale down processing and cater only to the domestic market.

“We used to export about 37,500 tonnes of rice every month through 15 railway rakes. Since the conflict began, not a single rake has moved,” mill owners said.

Industry insiders warn that if the situation persists, procurement of paddy could decline in the coming months, potentially affecting farmers and hitting the economy hard.

Photo: 18-Rice

Published Date: March 18, 2026