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2026-05-27 17:54:03
[Iranian Conflict Disrupts Gulf Shipping Routes, Indian Basmati Rice Exports Drop 7% in First Four Months, Shipping Insurance and Freight Rates Rise] ⑴ Two Indian government officials said on Wednesday that India's rice exports fell 1.3% year-on-year to 8.39 million tons in the first four months of 2026, with exports of high-quality Basmati rice falling 7% to 2.3 million tons. The main reason was that the conflict between the US and Israel over Iran disrupted shipping routes to the Gulf market. India accounts for more than 40% of global rice exports, exceeding the combined exports of Thailand, Vietnam, and Pakistan. ⑵ Iran was long the largest buyer of Indian Basmati rice until Saudi Arabia surpassed it last year. Currently, rice shipments bound for Iran, Iraq, Qatar, and Saudi Arabia are stuck en route due to the conflict, with both buyers and sellers suspending new transactions. A New Delhi exporter expects shipments to remain below normal levels until the conflict in Iran ends. ⑶ Since the outbreak of the conflict in late February, which disrupted shipping in the Strait of Hormuz, marine insurance and freight costs have risen significantly, which has also suppressed demand for non-Basmati rice from African buyers. Indian rice prices have already been pressured by a record harvest, falling by more than 5% this year, and declining exports will further exacerbate price pressures.
