look news india
The direct and major impact of the ongoing war and geopolitical crisis in West Asia (Middle-East) is beginning to be seen on India’s agricultural export trade. Being the world’s largest exporter of Basmati rice, Gulf countries (Iran, Saudi Arabia, Iraq, UAE) are the most important markets for India. But due to increasing threats and war conditions on sea routes, delivering goods to these countries has become extremely challenging.
As a result, India’s Basmati rice exports have registered a huge decline of about 27 percent year-on-year in April 2026. Along with this, the prices of Basmati have also come down significantly in the domestic market.
Export figures in April 2026 (APEDA Data)
According to the latest data released by the Agricultural and Processed Food Products Export Development Authority (APEDA), there has been a major setback on the Basmati export front:
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Exports for April 2026: 4.74 lakh tonnes
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Exports by April 2025: 6.47 lakh tonnes
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Total decline: 26.72 percent
Continuous disruptions in shipments to Gulf countries, increased freight charges and expensive insurance have pushed the entire export business towards recession.
Basmati rice cheaper by 8-10% in domestic market
Due to reduced demand in the export market and stoppage of shipment, the stock which was supposed to go out has been stuck in the domestic market. Due to this supply pressure, Basmati prices have fallen sharply in the Indian markets:
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Earlier price: ₹88 – ₹90 per kg (up to a few weeks ago)
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Current Price: ₹78 – ₹80 per kg
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price drop: close to 8 to 10 percent There has been a reduction of up to Rs. 5, due to which domestic consumers are relieved but rice millers and traders are worried.
Shipping cost and insurance become the biggest villains
According to the Haryana Rice Exporters Association and other big exporters, sea trade routes are no longer safe due to the war.
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Risk of Strait of Hormuz: Companies have to pay heavy additional insurance and war cess on ships passing through this route.
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Multifold increase in freight charges: Ship fares have increased manifold on many routes, due to which entering into new export agreements is proving to be a loss-making deal. Basmati consignments bound for Iran and Afghanistan have been most affected due to slow movement of ships.
Non-Basmati rice saved the day
Amidst all these adverse circumstances, an interesting and relieving figure has also emerged. There may have been huge losses on the Basmati front, but India’s total rice exports have increased in the month of April.
The reason for this was the huge demand for non-Basmati rice in the international market. Due to heavy demand from African countries and Bangladesh, the export of non-Basmati rice increased to 15.70 lakh tonnes in April 2026, which was 12.29 lakh tonnes in the same period last year (April 2025).
Upcoming season and concerns of farmers
The direct impact of this huge fall in the prices of Basmati can be seen on the sowing of the upcoming Kharif season:
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If the farmers do not get the right and better price for the paddy crop from the millers and exporters, then the farmers can stay away from the cultivation of Basmati paddy this year.
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As an alternative, they may turn to other crops, which may pose a serious threat to both Basmati production and global exports in the next season.
Way forward: Economic experts believe that India’s annual Basmati export business is approximately Rs 50,000 crore For which the Bay Area is the backbone. If the war in West Asia prolongs, its impact on the Indian rice industry could be even more serious and profound.