Roughly 400,000 tons of Indian basmati rice are currently stuck in ports or in transit as shipping routes through the Middle East face disruptions and freight rates surge.

Industry sources report that container shipping costs have more than doubled following the recent strikes by the United States and Israel on Iran. The instability is already affecting one of India’s key agricultural export sectors.

India is the world’s largest exporter of premium basmati rice, with more than half of shipments traditionally heading to Gulf countries such as Saudi Arabia, Iran, and the UAE.

According to exporters, about 200,000 tons are already at sea, while another 200,000 tons remain stranded in Indian ports. Many exporters have temporarily suspended new orders to the region, prioritizing the fulfillment of existing contracts and considering the possibility of declaring force majeure.

Rising war-risk insurance premiums and the withdrawal of coverage in areas near the Strait of Hormuz have pushed both tanker and container operators to avoid the route, driving up costs and causing delays.

Ironically, India is facing this disruption amid a record harvest. With shipments stalled and demand falling suddenly, basmati prices have already dropped by around 6%.

For the shipping industry, this is a clear example of the secondary impact of geopolitical conflict: disruption of food supply chains, congestion in export ports, and rising storage costs.

The All India Rice Exporters’ Association represents India’s rice exporting companies and advocates for the sector in both domestic and international markets.