Raw rice exports from Kakinada Anchorage Port, one of the most popular ports in Andhra Pradesh dropped nearly by 50% in March-July 2025. One of the main reasons behind this significant drop is the stringent port restrictions by government as well as the rising procurement costs. For the unversed, the TDP led NDA government recently tightened checks after media reports highlighted the diversion of Public Distribution System (PDS) rice into export channels. Heightened surveillance, warehouse inspections, and seizures have forced exporters to scale back or reroute shipments.
Reportedly, decline in rice exports from Kakinada port has also triggered the fear of job loss among several firms as the firms are unable to pay their workers. Exporters stated that shipments from Kakinada are no longer profitable for them as costs at the port touching INR 29/kg against a viable export price of INR 26-27/kg. Further the difference in the prices at ports are prompting rice exporters to switch to Chhattisgarh and other ports which offer cheaper grain and smoother operations. The decline has left thousands of workers with lower incomes. The condition has left exporters to move their cargo to Chennai, Mundra, Kandla, and even via China routes.