Rice Export Demand Weakens Due to High Shipping Costs

23-Mar-2026 05:02 PM

Hyderabad. In Asia's major rice-exporting nations—India, Thailand, Vietnam, Pakistan, and Myanmar—export offer prices for this staple grain are trending lower.

This decline is attributed to two primary factors: firstly, shipping freight rates have surged significantly due to the conflict in the Gulf region; and secondly, major importing nations currently hold substantial existing stocks of the grain. In the Gulf region, demand for Basmati rice associated with the Ramadan season has already subsided.

Most importing nations across Asia and Africa built up substantial inventories by importing large volumes of rice between December 2025 and February 2026; consequently, they are currently under no pressure to make urgent purchases.

These nations are awaiting the conclusion of the Gulf conflict and a subsequent decline in maritime transportation costs. In Vietnam and Thailand, rice export offer prices remain higher than those in India and Pakistan.

Between January 1 and March 15, 2026, Vietnam exported 1.74 million tonnes of rice. India, too, witnessed a strong export performance for rice during the months of January and February. On the domestic front, the supply and availability situation remains comfortable.