Rice exports stagnate in FY25 as Iran crisis, US tariffs hit demand
By Sandip Das
India’s rice exports during April-November, 2025-26 remains flat at $ 7.3 billion, a marginally higher than the previous year, due to higher global stocks and robust crop yield across major producing countries. The US imposed higher tariff, Iran facing economic crisis, has hit India’s rice exports in the current fiscal.
According to DGCIS, the rice exports dropped 30% in November, 2025 to $ 0.79 billion from $ 1.12 billion during November last year. During Aprl-November 2024-25, the country exported rice valued at $ 7.29 billion.
Overall shipment of rice was 19.86 million tonne (MT) during FY25, which was valued at a record $ 12.47 billion
What did Suraj Agarwal say?
Suraj Agarwal, CEO at Ricevilla Group said last year there was higher stocking by the countries fearing global conflicts. This year the situation has stabilized thus leading to sluggish growth in the exports of rice.
The US imposing tariff on rice imports on India has some impact on basmati rice exports in the current fiscal.
In addition, sharp fall in Iranian rial against the US dollar to 131,000 from around 90,000 has impacted India’s rice exports prospects as Iran struggles with deepening economic crisis.
Exporters said that the Iranian government had earlier announced plans to allow the import of 0.18 MT by granting permission to importers but has not made much progress.
What did Ranjit Singh say?
“The delay suggests that the Iranian government is not in a position to issue rice import permission at the official rate of Rials 28,700 against the dollar against market rate of 131,000 rial a dollar,” Ranjit Singh Jossan, vice president, the basmati rice millers and exporters association, Punjab, told FE
Rice exporters to Iran, one of the biggest destinations for Basmati rice, fear a slowdown in shipments and payment delays following the escalation of Israel-Iran conflict.
Iran has been among the largest importers of the aromatic long-grain rice for several years, along with Saudi Arabia, Iraq and the United Arab Emirates.
India has been the biggest rice – basmati and non-basmati – exporter in the world in the last decade and it has a market share of around 35% to 40% 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.
This article has been republished from The Financial Express.