Rice exports hit by West Asia crisis, rise just 1.7% in April-July
India’s rice exports rose 1.7% to $3.82 billion during April-July 2026-27, despite West Asia-related shipping disruptions and higher freight costs. July shipments fell 6.6% year-on-year to $860 million. Meanwhile, marine exports increased 11% to $2.59 billion, supported by stronger demand from Europe, China and Southeast Asia.
Outward shipment of rice, the largest item in India’s farm export basket, rose marginally by 1.7% to $3.82 billion during April-July 2026-27. Supply disruption and high freight due to the West Asia conflict continued to impact shipments.
In July 2026, the world’s biggest rice exporter shipped grain valued at $0.86 billion, a 6.6% decline year-on-year, as importing countries especially in the Middle East, adopted a cautious approach to building up grain stock.
“The sharp spike in rice exports in June by 16% to over $1 billion was due to the clearance and movement of shipments that had remained stranded at Indian ports for nearly four months following the US and Iran deal,” Ranjit Singh Jossan, vice president, Basmati Rice Millers and Exporters Association, Punjab, told FE.
Currently, due to uncertainty over cargo movement in the Strait of Hormuz, most rice and vegetable shipments are routed through the Sohar and Muscat ports in Oman and Khor Fakkan, United Arab Emirates (UAE).
Exporters still face challenges due to rising ocean freight rates, escalating insurance costs, shipping delays, and growing uncertainty across the Middle East market, a key export destination for the country’s basmati rice exports. The consignment, according to exporters, are transported via road to the UAE, Saudi Arabia and other countries.
Marine product shipments up 11%
Marine products shipment, the second biggest item in terms of agri-shipment, continues to surge with overall shipment rising to $ 2.59 billion in April-July period of FY27, an increase of over 11% on year.
A leading exporter said that while uncertainty about US tariff remains while diversification of exports to several countries in European Union and China, has sustained the growth in the shipment.
Despite being hit by the high US tariff last year, India’s marine products exports increased 14% year-on-year to a record $8.43 billion in FY26, thanks to a surge in shipments to several new markets such as Europe, China and Southeast Asia, an official said.
Last fiscal, the EU approved 102 additional fishery units for shipments, bringing the total approved units to 604. The EU is the third-largest seafood export destination for India after China, accounting for 15.10% of India’s total exports in FY25.
Meanwhile, the Agricultural and Processed Food Products Export Development Authority has stated that following the commencement of India-UK trade deal, 17 consignments of confectionary, rice, millet-based products, mango pulp, GI-tagged Fazli mangoes, Baruput guavas, fresch Amrapali mangoes and ready to eat food etc have been shipped to UK.
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Source : Financial Express
