Rice Exports

The reopening the Strait of Hormuz is expected to mitigate shipping bottlenecks, boosting trade to the Gulf, which represents a major market for Indian basmati rice.

India's foodgrain reserves have soared to 60.48 million tonnes, raising concerns over storage costs and wastage. Experts advocate for proactive offloading of surplus stocks through exports to stabilize domestic prices and support farmers, while addressing global food price increases.

New Delhi's decision served as a critical supply-side intervention easing tightness in global markets and contributing to a broad-based softening of food prices, especially across the Global South, say experts.

The exemption will be in force for six months, until 2 April 2026, and will benefit exporters targeting markets such as Turkey, Serbia, Bosnia and Herzegovina, Ukraine, Moldova, and other non-EU, non-EFTA European destinations.

With shorter crop cycles and export rewards, short-duration basmati varieties are changing India’s rice landscape and could tip total acreage past 3 million hectares this season.

Currently, basmati rice can be exported only above a floor price, parboiled rice exports attract a 20% export duty, and non-basmati and broken rice exports are completely prohibited. These curbs were brought in to ensure sufficient domestic stocks and cool prices.