India's basmati rice exports poised for steady growth despite Middle East tensions. Analysis of 47 companies representing 60% of the industry shows export volumes expected to grow up to 2% this fiscal year, reaching approximately 6.06 million tonnes. While Iran exports face disruption as a key market accounting for 14% of volumes, stronger demand from Saudi Arabia, Iraq, UAE and Yemen will offset losses. The Middle East region represents 70-72% of total basmati exports, making geopolitical stability critical. Working capital cycles will stretch due to logistical challenges including ship shortages and longer transit times, yet exporters can pass increased freight costs to customers. India dominates global basmati production at 85% market share, with exports comprising two-thirds of annual sales by volume.
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