The Gulf conflict has led to severe supply chain disruptions in agriculture, particularly affecting the basmati rice trade. Indian exporters report that despite initial fears, the impact has been mitigated by alternative supply routes and government support. However, the overall outlook remains grim, with projections indicating a decline in global basmati exports from 6.85 million tons in FY2024-25 to approximately 6.4–6.5 million tons due to a 9% drop in Indian exports.
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Gulf Conflict Disrupts Basmati Rice Trade and Global Production
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The ongoing Gulf conflict has significantly disrupted the agricultural sector, particularly impacting basmati rice trade, with global exports projected to decline from 6.85 million tons to around 6.4–6.5 million tons. Indian exports are expected to drop by 9% due to supply chain issues, affecting crop cycles across South Asia. Major rice-producing countries may lose up to 13 million tons of output, representing about 2.5–3% of global production.
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