Basmati exports likely to remain steady despite West Asia war: Crisil
17-Mar-2026 11:46 AM
Basmati exports likely to remain steady despite West Asia war: Crisil
★ According to Crisil Ratings, India’s basmati rice exports are expected to remain largely stable in 2025–26 and 2026–27, with growth of up to 2% over 6.06 million tonnes exported in 2024–25.
★ Exports to Iran may decline due to supply chain disruptions, but stronger demand from countries such as Saudi Arabia, Iraq, the UAE, and Yemen—expected to rise by 5–6%—is likely to offset the impact.
★ However, disruptions in the Strait of Hormuz could delay shipments and payments. If the situation persists for about a month, exports may be impacted by 350,000–370,000 tonnes.
★ Logistical challenges may increase exporters’ working capital requirements by 10–15%. Still, higher freight and insurance costs are expected to be passed on to buyers, helping maintain profitability.
★ Overall, despite geopolitical risks, robust demand is expected to keep India’s basmati exports stable.