What was expected to be a bumper year for Indian rice exporters – on the back of a strong harvest – has instead been upended by the ongoing war in Iran. 

What was expected to be a bumper year for Indian rice exporters – on the back of a strong harvest – has instead been upended by the ongoing war in Iran.

NEW DELHI: India’s booming rice export trade has been thrown into disarray by the Middle East conflict, with hundreds of thousands of tonnes of shipments stranded and fears growing over a ripple effect on prices and food security.

What was expected to be a bumper year for Indian rice exporters – on the back of a strong harvest – has instead been upended by the ongoing war in Iran.

Industry estimates suggest around 400,000 tonnes of rice are currently stuck at ports or at sea, unable to reach key markets.

TRADE DISRUPTIONS MOUNT

India is the world’s largest producer and exporter of rice, accounting for roughly 40 per cent of global exports.

It shipped about 6 million tonnes of long-grain basmati rice last fiscal year, much of it destined for the Middle East.

But with Iran a major buyer, the conflict has choked demand and disrupted shipping routes, leaving exporters facing heavy losses.

The Indian Rice Exporters Federation, which represents 7,000 exporters, said costs are rising while new orders have stalled due to the war.

Vinod Kumar Kaul, director general of the federation, said: “We have taken it up with the government to see that unjustified increases or new surcharges are not levied by shipping lines.”

Demand for basmati rice – a staple in Middle Eastern and South Asian cuisines – typically rises during Ramadan, but traders say that did not materialise this year.

Further, shipping disruptions have caused prices in local markets to dip by 10 per cent, according to the federation.

Traders warn that if consignments fail to reach their destinations and are diverted into the domestic market, it could disrupt operations, trigger a supply glut and cause prices to crash.“There will be no profit this year,” said Delhi-based rice exporter Virender Kumar, who ships grain to Mexico and Russia while also supplying the domestic market.

“As soon as the war started, rates fell. Our only hope now is that our business isn’t harmed in the long term.”

FERTILISER SUPPLY CONCERNS

Beyond rice exports, the conflict is raising concerns over fertiliser supplies, which are critical for India’s next sowing season.

The country is heavily reliant on fertiliser imports. A bulk of India’s urea imports – its most widely used fertiliser – comes from Gulf nations such as Oman, Qatar, Saudi Arabia and the United Arab Emirates.

At the same time, nearly half of India’s liquefied natural gas – used to produce urea domestically – comes from Qatar, where export capacity has been affected by Iranian attacks.

The Indian government has assured that it has sufficient fertiliser stocks for the upcoming sowing season and is exploring alternative sources to ensure continued supply. It has also prioritised gas supply to domestic fertiliser plants.

Indian Prime Minister Narendra Modi told parliament on Monday (Mar 23) that his government is working to protect its people from the impact of the Middle East conflict.

“The government has made adequate arrangements for fertilisers in recent years to handle emergency situations, and has ensured that the burden of global crises does not fall on farmers,” he added.

Experts say the situation highlights the need for longer-term reforms.

Narasimha Reddy Donthi, visiting faculty at Delhi-based think-tank Impact and Policy Research Institute, said India should shift its focus from increasing the use of chemical fertilisers to promoting organic alternatives.

“This will be more sustainable and independent of the war and any other international developments,” he said.

Source: CNA/ca(dn)

Published Date: March 24, 2026