Basmati jam in India: 400,000 tons of rice stuck in ports and on the road, Middle East deals halted

India is the world’s largest exporter of premium, aromatic basmati, and more than half of its exports go to Middle Eastern buyers (such as Saudi Arabia, Iran, and the United Arab Emirates). According to a Reuters report, due to the deteriorating security situation in the region, shipping companies are choosing detour routes, and insurers are reducing coverage for certain risky sections, which further increases transportation costs and delays delivery.

The situation is particularly sensitive in timing: India harvested a record basmati crop, but a sudden drop in export demand has depressed prices by nearly 6%, according to Reuters. At the same time, since basmati is practically only produced in significant volumes by India and Pakistan, a prolonged logistical disruption on the international market could later cause supply stress and price increases.

If freight rates remain persistently high, importers may face more frequent price corrections and delivery uncertainty in the premium rice category (basmati, aromatic rices). Short-term price drops may not necessarily appear on shelves quickly (stockpiling, contract prices), but if the supply disruption persists, procurement risk may push consumer prices upwards.