M. Soundariya Preetha

Export of rice, which is mainly the basmati varieties, to west Asian countries is suspended following the U.S., Iran, Israel war.

Satish Goel, president of the All India Rice Exporters Association, said that of the nearly six million tonnes of annual basmati rice exporters, 70% to 75% go to the west Asian countries. Of this, about one million tonnes goes to Iran. All exports to Iran and other west Asian countries have stopped completely. There are goods in the ships that are stranded and at the ports. At a meeting with the Central government officials on Tuesday, the Association sought review of the demurrage costs, he said.

The Indian Rice Exporters Federation national president Prem Garg told The Hindu that Iran, Saudi Arabia, Iraq and the UAE are among the largest buyers of Indian basmati rice and the exports are usually high between October and March every year.

The Federation has issued an advisory to its members to not undertake new cost, insurance and freight commitments for the west Asian destinations and, wherever feasible, to conclude sales on free on board terms. Ship fuel price last Friday was $ 480 a barrel and on Wednesday it was $ 925 a barrel. So, freight costs have shot up. Container and bulk vessel availability are also hit.

Between April–December 2025, exports to west Asia totalled 3.90 million tonnes and 7.16 million tonnes were shipped to Africa. Iran increased its sourcing in the last two months and is expected to have stocks that will last for a couple of months. Basmati wholesale prices went up 10–15% over the past month and heightened volatility in basmati prices is expected in the coming days, the Federation said. .

Non-basmati exports to African countries are also affected because of container issues, he said.

Published Date: March 5, 2026