Indian rice exporters on Tuesday said nearly 4 lakh metric tonnes (mt) of basmati rice is stuck at Indian ports and in transit amid widening conflict in the Gulf region, giving rise to payment-related uncertainty and concerns about losses in the low-margin product.
“About 2 lakh tonnes of basmati is stuck at our ports, and a similar quantity is in transit. No one can predict when the situation will be normal. We have met commerce ministry officials this week, and they are in touch with shipping lines to assess the situation,” Satish Goel, president of the All India Rice Exporters’ Association (AIREA) said.
Goel said India exports nearly 60 lakh tonnes of basmati, out of which nearly 40 lakh tonnes go to the Gulf region. “The crisis is big, but the Commerce Ministry has reassured all support. Some of our shipments are stuck at our port, some are in transit, and some are near the destination port,” he told The Indian Express.
Meanwhile, Commerce and Industry Minister Piyush Goyal said a consultation meeting was held with all stakeholder ministries on Tuesday with key logistics and trade facilitation partners to review the emerging geopolitical situation and its potential impact on India’s exports and imports.
“In this context, the ‘Inter-Ministerial Group (IMG) for Supply Chain Resilience’ has been created, comprising members from Department of Financial Services, Ministry of External Affairs, Ministry of Shipping, Ports & Waterways, Ministry of Petroleum & Natural Gas and Central Board of Indirect Taxes & Customs, to facilitate effective coordination, monitoring and follow-up,” Goyal as per a statement.
IREF says Basmati price volatility likely
Indian Rice Exporters’ Federation (IREF) said heightened volatility in basmati prices is expected in the coming days, as basmati wholesale prices were up 10-15% over the past month, and Iran is a key market for Indian rice. IREF said it has issued an advisory to its members in view of the deteriorating situation in the Islamic Republic of Iran and parts of the Gulf.
“Members are advised not to undertake new CIF (cost, insurance and freight) commitments for these destinations and, wherever feasible, to conclude sales on FOB (free on board) terms so that freight & insurance and related risks remain with the international buyer,” the IREF said in a statement.
Developments in Iran and the UAE can have an immediate impact on bunker (ship fuel) prices and, if oil prices rise, it may also disrupt container and bulk vessel availability, the federation said, adding that in such circumstances, container and bulk freight could increase sharply at short notice, exposing exporters to losses on fixed delivered-price contracts.
“The situation may also lead to a steep increase in insurance premiums. Exporters are also advised to exercise restraint while concluding new orders and to avoid open-ended, unhedged positions. India’s rice trade with Africa and the Middle East together accounts for roughly half of the national rice exports. During April-December 2025, exports to the Middle East totalled 3.90 million metric tonnes (mmt) and to Africa 7.16 mmt, as detailed below,” IREF said.
The five leading basmati destinations are in West Asia — Saudi Arabia, Iran, Iraq, UAE and Yemen — and are, therefore, among the most directly affected and account for about 50% of all basmati rice exports from India.
ExplainedImpact rate from bunker fuel prices
Developments in Iran and the UAE can have an immediate impact on bunker (ship fuel) prices and, if oil prices rise, it may also disrupt container and bulk vessel availability, according to the Indian Rice Exporters’ Federation. This could spike container and bulk freight prices, exposing exporters to losses
Indicating further escalation in tensions, US President Donald Trump said Tuesday that Tehran wanted to talk, but it was too late, as the US continued its military operation against Iran.
“Their air defence, Air Force, Navy, and Leadership is gone. They want to talk. I said, “Too Late!” Trump said in a Truth Social post commenting on an opinion piece.
The West Asian conflict has entered the fourth day of large-scale combat operations. Following the confirmed death of Supreme Leader Ali Khamenei, Israeli and US forces have intensified “Operation Epic Fury”, striking over 1,250 targets across Iran, including ballistic missile hubs and naval assets. As Tehran vows “scorched earth” retaliation in the Strait of Hormuz, the global economy is reeling with gold prices surging past $5,200 and critical energy corridors under threat.
A plume of smoke rises following a U.S.-Israeli military strike in Tehran, Iran, Tuesday, March 3, 2026.AP/PTI(AP03_03_2026_000450B) 
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