Rice Industry Under Pressure Amid Export Challenges and Rising Stocks

13-Mar-2026 04:22 PM

New Delhi – The situation in West Asia has become highly unstable due to the ongoing conflict involving Iran, United States, and Israel. The tensions are affecting several countries in the Gulf and the Middle East, and this has started to significantly impact India’s rice exports, particularly basmati rice. Sea routes have become less secure, while freight and marine insurance costs have also risen sharply. Although Indian exporters currently hold substantial rice stocks, they are facing serious difficulties in shipping export consignments.

According to available data, as of February 1, 2026, the central pool held a massive stock of 33.67 million tonnes of rice and 60.254 million tonnes of paddy. In recent years, India’s domestic rice production has consistently increased, creating major storage challenges for the Food Corporation of India.

Meanwhile, the ongoing conflict in West Asia has disrupted export demand for rice. As a result, several ships loaded with rice for Middle Eastern destinations have reportedly returned to Indian ports. The return of these vessels has led to a heavy buildup of containers at ports such as Mundra Port, Gandhidham Port, and Mumbai Port, causing space shortages and logistical congestion.

Industry analysts say that the current global situation is not favorable for Indian rice exports. If the conflict continues for several more weeks, the pressure on the rice industry could increase significantly.