By Susan Reidy

MUMBAI, INDIA — Nearly 400,000 tonnes of Indian basmati rice is stuck at ports and in transit as freight rates have more than doubled since the United States and Israel attacked Iran, Reuters reported, citing trade officials.

India is the world’s largest exporter of basmati rice with more than half of its shipments destined for the Middle East, including Saudi Arabia, Iran and the United Arab Emirates.

About 200,000 tonnes of rice is stuck in transit and a similar amount is stranded at Indian ports, said Satish Goel, president of the All India Rice Exporters’ Association (AIREA). Rising container costs are inhibiting exporters’ ability to move the stocks and there are no alternative markets that can absorb the volume, Goel said.

Tankers and container ships are avoiding the Strait of Hormuz since insurers have cancelled coverage, Reuters said. AIREA has asked India’s trade ministry for help.

Exporters are not taking new orders from the Middle East and are prioritizing shipments under existing contracts, Reuters said, citing a dealer with a global trading house.India had a record basmati harvest this year and with the slowdown in ⁠exports, prices have dropped nearly 6%. 

Published Date: March 4, 2026