Export Rice Prices Edge Up as Red Sea and Hormuz Disruptions Raise Shipping Costs
Export prices for 5% broken white rice rose in Vietnam, Thailand and India, while Pakistan’s benchmark remained unchanged. Indian exporters face higher freight and insurance costs, with about 500,000 tonnes of rice reportedly held at Kandla and Mundra ports.
Asian export benchmarks move higher
Rice export prices increased modestly across several leading Asian origins on July 25 as shipping disruptions in the Red Sea and around the Strait of Hormuz added uncertainty to grain logistics. Vietnambiz, citing the Vietnam Food Association, reported that Vietnam’s 5% broken white rice gained $2 per tonne from the previous day to $426-$430 per tonne. Vietnamese Jasmine rice remained at $546-$550 per tonne, while 5% broken fragrant rice held at $500-$510 per tonne.
Thailand’s 5% broken white rice also rose by $2 per tonne to $447-$451 per tonne. India recorded a larger increase: its 5% broken white rice advanced by $8 per tonne to $362-$366 per tonne. Indian 5% broken parboiled rice was quoted at the same $362-$366 range after a $2 increase. Pakistan’s 5% broken white rice was unchanged at $410-$414 per tonne.
Indian cargoes face delays and higher costs
The price movements came as Indian exporters warned that simultaneous security problems on two major maritime corridors were disrupting deliveries. Financial Express reported that threats in the Red Sea were affecting cargo movements through the Bab al-Mandab Strait, while prolonged uncertainty around the Strait of Hormuz was weighing on Indian rice shipments to Saudi Arabia, Iran and the European Union.
Ranjit Singh Jossan, vice president of the Punjab Basmati Rice Millers and Exporters Association, described the simultaneous disruption of the two routes as an unprecedented challenge for Indian exporters. He said Middle East conflict had pushed ocean freight to record levels and raised insurance costs. Delayed shipments were also tying up working capital, creating financial pressure for export businesses. Trade sources said about 500,000 tonnes of rice, including basmati, remained stuck at the ports of Kandla and Mundra in Gujarat after months of shipping uncertainty connected with Hormuz.
Suraj Agarwal, co-founder and chief executive of Kolkata-based exporter Rice Villa, said Red Sea congestion was forcing vessels to take longer routes, increasing freight costs and extending delivery times. That could make Indian rice more expensive for buyers, particularly in the Middle East and Europe. Bab al-Mandab connects the Red Sea with the Gulf of Aden and provides access to the Suez Canal, making it a critical route between Asia, Europe and Africa.
Trade grows despite logistical pressure
India’s rice exports nevertheless increased by more than 4% year on year to $3.03 billion during April-June of the 2026-2027 financial year, according to the report. June exports alone exceeded $1 billion, up 16%, as an easing of Middle East tensions helped restore part of the basmati supply chain serving Iran, Saudi Arabia and other Gulf markets. The improvement followed a 7.5% decline in the value of Indian rice exports during the 2025-2026 financial year, when basmati and non-basmati shipments generated $11.53 billion.
India has remained the world’s largest rice exporter for more than a decade and accounts for about 45% of global rice trade. It supplies basmati and non-basmati rice to more than 140 countries and competes with Pakistan and Thailand in several markets. Saudi Arabia is India’s largest basmati destination at about 1.2 million tonnes annually, while Iran imported nearly 800,000 tonnes in the previous financial year. These volumes leave exporters and buyers particularly exposed to disruptions affecting Red Sea and Gulf routes.
Vietnam’s domestic market presented a mixed picture. Raw IR 504 rice was stable at 9,500-9,600 dong per kilogram and raw CL 555 rice at 9,700-9,800 dong. Fresh paddy prices in An Giang mostly ranged from 6,000 to 7,000 dong per kilogram depending on the variety, while rice and bran prices softened slightly or remained stable. The gap between steady domestic quotations and firmer export benchmarks indicates that logistics, rather than a broad increase in local raw-material costs, was an important factor shaping the latest international price movement.
