Rice Exports Cross $1 Billion in June, But Tea, Coffee and Spices Lose Ground
India's merchandise exports hit $40.41 billion in June 2026, with rice shipments leading the agri charge at $1 billion — but tea, coffee, spices, and oilseeds all posted year-on-year declines.
The short answer
India's rice exports rose 16.48% year-on-year to nearly $1 billion in June 2026, emerging as the standout performer among agricultural commodities, according to Commerce Department data. However, shipments of tea, coffee, spices, cashew, oil meals, and oilseeds all declined during the same month. Overall merchandise exports grew strongly to $40.41 billion, though a faster rise in imports pushed the quarterly trade deficit to $37.42 billion.
The headline number
Rice Carries the Agri Export Flag in June
India's rice shipments hit nearly $1 billion in June 2026, a 16.48% jump over the $858.8 million recorded in the same month last year, according to data released by the Commerce Department. The grain was the clearest bright spot in an otherwise mixed agricultural export picture.
For the April–June quarter as a whole, rice exports reached $3.03 billion — a 4.36% rise over the corresponding period of the previous fiscal year. The consistent quarterly performance suggests that India's position as a dominant global rice supplier remains intact, even as other farm-export categories struggle to maintain momentum.
The agri divide
Tea, Coffee, Spices and Oilseeds All Retreat
Beyond rice, the June 2026 agricultural export data painted a largely subdued picture:
- Tea exports fell 19.21% to $67.2 million, down from $83.1 million in June 2025.
- Coffee exports slipped 7% to $171.3 million, compared with $184.3 million a year earlier.
- Spices, cashew, oil meals, and oilseeds also registered year-on-year declines, though specific figures were not broken out in the Commerce Department release.
- Fruits and vegetables managed a modest recovery, edging up 1.31% to $261.1 million from $257.7 million.
The declines across multiple agri categories point to a divergence within India's farm-export basket — with rice benefiting from global demand while plantation crops and spices face headwinds that may reflect pricing pressures or demand softness in key importing markets.
The broader trade picture
Overall Exports Surge, But Imports Outpace Them
India's total merchandise exports rose sharply from $34.98 billion in June 2025 to $40.41 billion in June 2026, reflecting broad-based strength across non-agricultural sectors. Engineering goods — one of India's largest export categories — climbed 20.74% to $11.48 billion. Electronics exports grew 18.93% to $4.93 billion, while gems and jewellery surged 34.64% to $2.41 billion. Organic and inorganic chemicals rose 19.42% to $2.77 billion.
However, merchandise imports grew at a faster clip, rising from $54.08 billion to $70.84 billion. Services exports also increased, to $33.03 billion from $32.11 billion, but services imports climbed to $17.92 billion from $15.90 billion. Combined merchandise and services exports for the quarter reached $232.73 billion, up 11.37% — yet total imports for the same period rose to $270.15 billion from $229.82 billion.
The deficit concern
Quarterly Trade Gap Nearly Doubles to $37.42 Billion
The most striking takeaway from the April–June 2026 data is the sharp deterioration in India's trade balance. The merchandise trade deficit widened to $37.42 billion during the quarter, compared with $20.85 billion in the same period of the previous fiscal year — nearly double in the space of twelve months.
Total merchandise exports for the quarter rose 15.92% to $129.32 billion, and non-petroleum exports grew 12.44% to $106.30 billion, reflecting genuine export dynamism. But with imports expanding at an even faster pace to reach $270.15 billion for the quarter, the net trade position has come under considerable strain — a development that policymakers and the Reserve Bank of India will be monitoring closely given its implications for the current account.
Why it matters
Rice's sustained export momentum — up 4.36% across the April-June quarter to $3.03 billion — signals that India's competitive position in global grain markets remains strong, likely underpinned by adequate domestic supply and stable pricing. Yet the broad-based weakness in tea, coffee, spices, and oilseed exports is a concern for farming communities and agri-exporters dependent on these crops. Policymakers and traders will need to watch whether the declining agri-export categories recover in the months ahead, even as a rapidly widening trade deficit — from $20.85 billion to $37.42 billion in a single quarter — puts pressure on the broader trade account.
Frequently asked
- How much did India export in rice during June 2026?
- India's rice exports reached nearly $1 billion in June 2026, a 16.48% increase over the $858.8 million recorded in June 2025, according to Commerce Department data.
- Which agricultural exports declined in June 2026?
- Tea exports fell 19.21% to $67.2 million, coffee exports declined 7% to $171.3 million, and shipments of spices, cashew, oil meals, and oilseeds also registered year-on-year declines. Fruit and vegetable exports edged up marginally by 1.31%.
- What was India's total merchandise export figure for June 2026?
- India's total merchandise exports rose to $40.41 billion in June 2026, up from $34.98 billion in June 2025.
- How much did India's trade deficit widen in the April–June 2026 quarter?
- India's merchandise trade deficit for the April–June 2026 quarter widened significantly to $37.42 billion, compared with $20.85 billion in the same quarter of the previous fiscal year.
Source
This report summarises and analyses coverage from Rural Voice — Latest. The analysis and India context are IndianAgri's own.