India’s rice exports have fallen marginally in the first quarter of 2026, as disruption from the Iran conflict hit shipments of premium basmati rice to Gulf markets, according to government officials.

Somoy Business Desk

Officials said exports were affected after the US-Israeli war with Iran disrupted maritime trade routes and delayed cargoes bound for key destinations in the Middle East.

India, which accounts for more than 40% of global rice exports, typically ships more rice than Thailand, Vietnam and Pakistan combined.

Total rice exports from January to April fell 1.3% year-on-year to 8.39 million metric tonnes, officials said. They spoke on condition of anonymity as they were not authorised to speak to the media.

Exports of basmati rice dropped 7% to 2.3 million tonnes, driven by reduced shipments to markets including Iran. Non-basmati exports rose slightly to 6.09 million tonnes from 6.03 million tonnes a year earlier.

Exporters said shipments were expected to remain under pressure until the conflict eases, with cargoes to Iran, Iraq, Qatar and Saudi Arabia facing delays. Some traders have also held back on new deals due to uncertainty, reports Reuters.

India mainly exports non-basmati rice to African and Asian markets, including Bangladesh, Benin, Ivory Coast, Guinea and Cameroon, while basmati rice is largely shipped to buyers in Saudi Arabia, Iraq, Iran and the United Arab Emirates.

Iran had been India’s largest basmati rice market until last year, when Saudi Arabia overtook it, according to official data.

Exporters also said rising shipping insurance and freight costs, linked to tensions and attacks in the region, had added further pressure on trade flows through the Strait of Hormuz.

Published Date: May 29, 2026