Its declining exports will add to pressure on Indian prices, which have fallen more than 5% this year following a record rice harvest.The country’s rice exports during January to April fell 1.3% from a year ago to 8.39 million metric tons, the officials said. They declined to be named because they were not authorised to speak to the media.
Exports of basmati rice fell 7% during the period to 2.3 million metric tons, as shipments to markets, including Iran, declined. Non-basmati rice exports edged up to 6.09 million tons from 6.03 million tons a year earlier.
Read more: India cancels soymeal export deals, turns to Africa for soybean imports
New Deals Stalled As Shipments Are Delayed
One exporter based in New Delhi, who also asked not to be named, said shipments were expected to remain below typical levels until the Iran war ends.Rice cargoes bound for Iran, Iraq, Qatar and Saudi Arabia remain delayed in transit because of the conflict, leading buyers and exporters to hold back on new deals, the exporter said.
India mainly ships non-basmati rice to markets such as Bangladesh, Benin, Ivory Coast, Guinea and Cameroon, while its premium basmati rice predominantly goes to buyers in Saudi Arabia, Iraq, Iran and the United Arab Emirates.Iran was India’s biggest market for basmati rice until last year when Saudi Arabia surpassed it, according to government figures.
Shipping insurance and freight costs have risen since U.S.-Israeli airstrikes began the war on Iran at the end of February, leading to disrupted maritime traffic through the Strait of Hormuz.
Read More: Adequate availability of fertilisers for upcoming Kharif sowing season: Govt
That has weighed on demand for non-basmati rice from African buyers, an exporter based in Kakinada, southeastern India, said.India competes with Thailand, Vietnam, Myanmar and Pakistan in the global rice market.