India's Rice Exports Stagnate at $ 7.3 Billion Amid US Tariffs & Iran’s Economic Crisis

India’s rice exports during April-November, 2025-26, have stagnated at $ 7.3 billion, a slightly higher amount than the last year, due to higher global stocks and better crop yield in the major producing countries. The imposition of higher US tariffs and Iran’s struggling with an economic crisis have hit India’s rice exports in the current fiscal year. 

According to DGCIS, the rice exports fell by 30% in November 2025 to $ 0.79 billion from $ 1.12 billion during November last year. Notably, the country exported rice valued at $ 7.29 billion during April-November 2024-25.

US tariffs on rice imports from India affected basmati rice exports

The aggregate shipment of rice was 19.86 million tonnes MT during FY25, which was valued at a record $ 12.47 billion. Interestingly, Suraj Agarwal, CEO at Ricevilla Group, stated last year that there was higher stocking by the countries fearing global conflicts. This year, the situation has stabilised, thus leading to sluggish growth in rice exports. The US imposing tariffs on rice imports from India has affected the basmati rice exports in the current fiscal year. Furthermore, a sharp fall in the Iranian rial against the US dollar to 131,000 from around 90,000 has affected India’s rice exports prospects as Iran struggles with a profound economic crisis. The exporters stated that the Iranian government had earlier announced plans to enable the import of 0.18 MT by granting permission to importers, but has not made much progress.

Iran has been one of the largest importers of aromatic long-grain rice for several years

Ranjit Singh Jossan, vice president, the Basmati Rice Millers and Exporters Association, stated that the delay implied that the Iranian government is not in a position to issue rice import permission at the official rate of Rials 28,700 against the dollar, against the market rate of 131,000 rials a dollar. Moreover, Rice exporters to Iran, one of the biggest destinations for Basmati rice, are afraid of sluggish in shipments and payment delays following the escalation of the Israel-Iran conflict.

Notably, Iran has been one of the largest importers of the aromatic long-grain rice for several years, including Saudi Arabia, Iraq and the United Arab Emirates. India has been the biggest basmati and non-basmati rice exporter in the world in the last decade, holding the market share of nearly 35% to 40% in the rice trade.

Notably, India exports both aromatic and long-grain basmati and non-basmati varieties to more than 140 countries across Asia, the Middle East, Europe, and the U.S. In several countries, it battles with competition from rice-exporting countries, including Pakistan and Thailand.