Explainer: How Iran-Israel conflict is impacting Indian basmati rice exports
Because of the ongoing conflict in the Middle East, Crisil notes that if logistical challenges persist for about a month, trade volume could be impacted by about 3.5-3.7 lakh tons (350,000-370,000 tons) (source: March 2026).
This is a huge setback for exporters: in fiscal year 2024-25 India exported about 6.06 million metric tons of basmati, valued at roughly ₹50,312 crore ( ₹503 billion).
Impact on shipping and costs
Most Indian basmati goes to the Middle East (think Saudi Arabia and Iran), which means these tensions have hit our biggest markets hard.
Shipping costs have doubled, with new war surcharges and higher insurance making things even tougher.
Ships now take up to two weeks longer as they detour around risky areas.
Exporters warn of bankruptcy, farmers may be affected
Even with record harvests, basmati prices have dropped by up to 10%.
Exporters are struggling; exporters warn that many could face bankruptcy if the disruption continues and are pausing new deals.
Many are asking the government for help just to survive: this matters because the industry supports large numbers of farmers in Punjab and Haryana.
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