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Basmati rice prices fall in domestic market as Iran war disrupts exports
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Saturday, 07 March, 2026, 16 : 00 PM [IST]
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Our Bureau, Mumbai
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Prices of basmati rice in the domestic market have declined by around 5–6 per cent following disruptions in exports to West Asia caused by the ongoing conflict involving Iran, industry officials said. The Middle East is a key destination for India’s basmati rice shipments, accounting for nearly half of the country’s estimated Rs 50,000-crore exports of the premium grain.
According to trade sources, the geopolitical tensions have disrupted shipping routes and slowed export orders, leading to a build-up of stocks in India. Around 200,000 tonnes of basmati rice are currently stuck at ports, while a similar quantity is stranded in transit as vessels avoid routes across the conflict-affected region.
Industry executives said the sudden slowdown in exports has increased supply in the domestic market, resulting in a fall in prices. Exporters warned that if the conflict continues for a longer period, the local prices of basmati rice could decline further due to excess inventory.
Iran remains one of the major buyers of Indian basmati rice and accounts for a significant share of the country’s exports of the aromatic grain. Demand from the region had earlier pushed prices higher in February, when strong overseas orders led to a 5–10 per cent rise across several basmati varieties. However, the ongoing conflict has reversed the trend as shipments slowed and new deals were temporarily halted.
Exporters also pointed out that the crisis has pushed up freight rates, insurance premiums and other shipping costs for Gulf-bound cargo, making trade more difficult. Some industry bodies have urged the government to consider relief measures as exporters face working-capital pressure due to delayed shipments and payments.
India is the world’s largest exporter of basmati rice, and a prolonged disruption in the West Asian trade corridor could impact both exporters and farmers if overseas demand continues to weaken in the coming weeks.
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