India Rice Exports Stall as 400,000 Tonnes Stranded
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- Indian Rice Exporters Federation director general Vinod Kumar Kaul said roughly 400,000 tonnes of rice are stranded at ports or at sea, with costs rising and new orders stalled; the 7,000-member federation has asked the government to block "unjustified increases or new surcharges" by shipping lines.
- Basmati rice demand, typically a Ramadan staple in Middle Eastern and South Asian cuisines, did not materialize this year, while shipping disruptions pushed local market prices down 10%, according to the federation.
- Delhi-based rice exporter Virender Kumar, who ships grain to Mexico and Russia, said "there will be no profit this year" and that rates fell as soon as the war started, with exporters fearing diverted consignments could trigger a domestic supply glut.
- India's fertilizer supply faces new pressure because nearly half of its LNG — used to produce urea domestically — comes from Qatar, where export capacity has been hit by Iranian attacks, and bulk urea imports come from Gulf states including Oman, Qatar, Saudi Arabia, and the UAE.
- Prime Minister Narendra Modi told parliament on March 23 that the government has made "adequate arrangements for fertilisers" and is working to shield citizens from Middle East conflict fallout, and said the burden of global crises "does not fall on farmers."
- Impact and Policy Research Institute visiting faculty Narasimha Reddy Donthi argued India should shift from chemical to organic fertilizers to reduce vulnerability to war-driven supply shocks.
Why it matters: Indian rice exporters expected a bumper year on a strong harvest, but 400,000 tonnes are stranded and local prices dropped 10%, putting the 7,000-member Indian Rice Exporters Federation on track for a profitless year. The conflict also threatens India's fertilizer supply chains for the next sowing season, since nearly half its LNG for urea production comes from Qatar.
