Basmati Rice Exports Unlikely to be Significantly Affected by West Asia Crisis

16-Mar-2026 08:18 PM

New Delhi. A leading credit rating agency states that while the crisis in West Asia, the Middle East, and the Gulf region has intensified significantly due to the Iran-US conflict, it is unlikely to have any major adverse impact on India's overall Basmati rice exports—neither during the current fiscal year nor in the next one. On the contrary, total Basmati rice exports are projected to rise by approximately 2 percent compared to the previous fiscal year, reaching 6.06 million tonnes in the current fiscal year.

According to the rating agency, since Iran is directly involved in the conflict, Basmati rice exports to that country—a leading buyer—are currently being affected.

However, this shortfall is expected to be offset by robust demand from other nations within the same region.

India has witnessed strong Basmati rice export performance in several other countries, including Saudi Arabia, Iraq, the United Arab Emirates, and Oman.

Nevertheless, the working capital cycle for Indian Basmati rice exporters may face some constraints due to emerging disruptions in transportation routes.

An insufficient number of vessels are currently available for export shipments. Shipping freight rates and insurance costs have risen substantially; rerouting has extended shipment transit times; and certain challenges regarding payments also persist.

It appears that Indian exporters may be able to safeguard a portion of their profit margins by passing the burden of these increased shipping and insurance costs onto the importers.