Rice exporter stocks fall as West Asia tensions cloud India’s basmati trade with Iran and Gulf markets; exporters seek relief on stuck consignments and freight costs.

Written by Sandip Das

While the volatile situation in West Asia may impact India’s rice export prospects, the shares of major grain exporters—LT Foods, KRBL, Chaman Lal Setia and GRM Overseas —declined on Monday.

Shares of LT foods (Daawat) and KRBL (India Gate) on Monday declined by 5.5% and 2.7% to Rs 380 and Rs 330.50 respectively on the BSE compared to previous day’s trading,

Shares of Chaman Lal Setia and GRM overseas declined by 3.5% and 1.4% to Rs 261 and Rs 159.35 respectively on Monday compared to the previous trading day on November 7 (Friday).

What do reps from All India Rice Exporters Association say?

The rice exporters stated that they are still assessing the geopolitical tension in the middle east which has remained fluid.

“We are watching the situation closely as currently there has been no contact established with agencies in Iran,” Satil Goyal, President, All India Rice Exporters Association (AIREA), told FE.

Iran, Saudi among largest importers of Indian long-grain rice

Iran has been among the largest importers of the aromatic long-grain rice for several years from India, along with Saudi Arabia, Iraq and the United Arab Emirates. The rice exports to Iran had exceeded 1 million tonne (MT) a few years back.

Exporters fear that as the conflict expands to other Middle East countries, the impact could be even more severe, given the region’s significance in India’s rice export portfolio.

Rice exporters on Monday attended the meeting called by the commerce ministry on assessing the situation arising out of the conflict. “We have asked the government to ensure that grain exporters are not penalized for consignments stuck at the ports and other associated issues such as freight and insurance,” Goyal of AIREA said.   

The rice exporters are likely to hold a meeting with officials of the Agricultural and Processed Food Products Exports Development Authority (APEDA) on Tuesday to assess the situation.

Trade sources said the Government Trading Corporation of Iran –placed an order of around 0.6 million tonne (MT) of basmati with Indian exporters last month to bolster domestic grain stocks anticipating possible attack by the US.  

India has been the world’s biggest rice exporter in the last decade, with a market share of around 35% to 40% in grain trade.

In FY25, India’s rice exports were valued at a record $12.95 billion, while during the April-January period of FY26, India shipped rice valued at $9.33 billion, a 7.5% decline year-on-year.

Prior to this conflict, payment settlements of rice exports to Iran used to take 3-4 months and the future direction of the conflict would decide future rice exports prospects.

Ranjit Singh Jossan, vice president of the Basmati Rice Millers and Exporters Association, Punjab, said the conflict threatens to disrupt the wider Middle East market, a key destination for Indian aromatic long-grain rice, as banking channels, international transactions and payment settlements face delays and compliance risks.

Published Date: March 3, 2026