Rice exports, India’s largest agri-product shipment, rose just 2.17% to $4.81 billion during April-August, 2026-27 year-on-year, as supply disruption and high freight due to the West Asia conflict continue to impact shipments.
In August, 2026, the world’s biggest rice exporter, shipped grain valued at $0.91 billion, an increase of 4.12% compared to the same month last year, as importing countries in the middle east continue to adopt a cautious approach in building stock.
Exporters said that ports across Iraq, Kuwait, Bahrain, Qatar, Dammam, and Jebel Ali remain heavily disrupted, forcing shipments to take longer and more expensive alternative routes. Even Jeddah, a key Red Sea gateway, in Saudi Arabia has faced Houthi attacks, while growing tensions raise serious concerns over the Bab el-Mandeb route.
Because of elevated freight costs, Saudi Arabia, the United Arab Emirates (UAE), and others in the Middle East are building rice stocks according to immediate needs as the situation remains fluid, exporters said.
Currently, due to uncertainty over cargo movement in the Strait of Hormuz, most rice and vegetables shipments are through Sohar and Muscat ports of Oman and Khor Fakkan, UAE.
“If the situation does not improve immediately, the crisis will not remain confined to the Middle East, it could seriously disrupt India’s rice exports to Europe and other global markets, creating a long-term challenge for the entire Indian rice industry,” Ranjit Singh Jossan, vice president, Basmati Rice Millers and Exporters Association, Punjab, told FE.
Since February, the Indian rice exporters are facing sharp increases in ocean freight and marine insurance costs. Freight to several Middle Eastern destinations has surged by nearly 1,000% to 3,000%, while disruptions linked to the Strait of Hormuz continue to severely affect rice exports.
The US department of agriculture has projected India’s rice exports in 2025-26 at 23 million tonne (MT), against 22.83 MT in previous year.
The value of rice exports including Basmati and non-Basmati varieties, fell by 7.5% year-on-year to $11.53 billion in FY26. India has been the world’s biggest rice exporter (Basmati and non-Basmati) in the last decade, holding a market share of around 45% in rice trade.
India exports both aromatic and long-grain Basmati and non-Basmati varieties to over 140 countries, across Asia, the Middle East, Europe, and the U S. In several countries it faces competition from rice exporting countries including Pakistan and Thailand.