Rice maker KRBL stops production for Middle East basket even as exports contribute 30% to overall revenue
India’s basmati trade is feeling the heat as West Asia tensions disrupt demand and logistics. KRBL says prices have fallen $50/tonne and production for the region—30% of revenue—has paused. Key buyer Iran remains critical, with export outlook hinging on conflict duration.
The ongoing West Asia conflict is beginning to impact India’s basmati rice trade, with KRBL, one of the country’s largest exporters, indicating disruptions in demand and supply chains across the region.
Speaking to CNBC-TV18, Ashish Gupta of KRBL said basmati rice prices have fallen by about $50 per tonne over the past week, reflecting the uncertainty and logistical disruptions caused by the escalating conflict in West Asia.
Production halted for West Asia export basket
Gupta said the company has temporarily stopped production for its West Asia export basket, which represents a significant portion of KRBL’s overseas sales.
According to the company, West Asia accounts for roughly 30% of KRBL’s revenue, making the region one of the most critical markets for Indian basmati exporters.
The decision to pause production highlights the growing operational challenges exporters are facing as geopolitical tensions affect shipping routes, trade flows and demand patterns.
Iran remains key buyer of Indian basmati
Iran has traditionally been one of the largest importers of Indian basmati rice, making developments in the region particularly important for Indian exporters.
Disruptions in the region could therefore have a direct impact on the basmati export ecosystem, including traders, processors and logistics providers.
Demand uncertainty despite Ramadan season
The timing of the disruption is particularly notable as Ramadan typically brings a surge in demand for basmati rice across the Middle East.
However, Gupta indicated that the ongoing conflict has hampered the entire supply chain, affecting procurement, shipments and distribution across key markets.
Export outlook depends on conflict duration
Industry players say the key concern now is how long the conflict continues. A prolonged disruption could weigh further on prices and export volumes.
For companies with heavy exposure to the Middle East, the situation is being closely monitored as geopolitical developments continue to reshape trade flows in the region.
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Source : Business Up Turn
