Indian rice exports decline due to a drop in basmati rice shipments to the Gulf

- India's rice exports saw a slight decline in the first four months of this year compared to the same period last year, two government officials said on Wednesday, after the U.S.-Israeli war on Iran disrupted shipments of premium basmati rice varieties to Gulf markets.

India accounts for more than 40 percent of global rice exports, and typically exports more than the combined exports of the next three largest suppliers, Thailand, Vietnam and Pakistan.

The decline in its exports will increase pressure on prices in India, which have fallen by more than five percent this year following the largest rice harvest.

The officials said that rice exports from the country during the period from January to April fell 1.3 percent compared to last year, reaching 8.39 million tons. The officials declined to be named because they were not authorized to speak to the media.

Exports of basmati rice fell seven percent during this period to 2.3 million tons, with shipments to markets including Iran declining, while exports of non-basmati rice rose slightly to 6.09 million tons from 6.03 million tons in the previous year.

One exporter based in New Delhi, who also asked not to be named, said shipments are expected to remain below normal levels until the war in Iran ends.

The source added that the transfer of rice shipments to Iran, Iraq, Qatar and Saudi Arabia remains disrupted due to the conflict, prompting buyers and exporters to hold off on making new deals.

India primarily ships non-basmati rice to markets such as Bangladesh, Benin, Ivory Coast, Guinea and Cameroon, while premium basmati rice mostly goes to buyers in Saudi Arabia, Iraq, Iran and the UAE.

According to government figures, Iran was India's largest market for basmati rice until last year when it was overtaken by Saudi Arabia.