India's rice output faces biggest drop in nearly two decades amid weak monsoon

India's rice production is set to decline significantly this year as below-normal rainfall during the crop maturation phase reduces yields substantially. The shortfall will lift local prices and increase export costs for Indian rice shipments.

Despite the production drop, India's large existing stockpiles will enable the country to sustain record export levels. Farmers cultivating premium rice varieties may benefit from higher open-market prices resulting from the tighter supply.