The India Rice Market is estimated to be valued at USD 52.82 billion in 2024, with a projected growth to USD 59.46 billion by 2029, showcasing a CAGR of 2.40% during the forecast period.
Production, Consumption, and Trade Analysis
In 2020, India produced 178.3 million metric tons of rice, becoming the world’s second-largest producer after China, with over 11.0% of the global production. Over the past 60 years, India’s rice production has increased by 3.5 times.
In 2021, India exported 20 million tons of rice, including 16 million tons of non-Basmati rice, making it the world’s leading rice exporter. Indian rice is in high demand in North America and Europe. India’s rice production supports these exports.
India’s rice production benefits from timely monsoons, unlike countries like Thailand and Indonesia, which face challenges from fluctuating rainfall. Major rice-producing states in India include West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Haryana, Tamil Nadu, Odisha, and Bihar.
India has become the top exporter of rice globally, with exports surpassing 21 million metric tons in 2021, outpacing Thailand, Vietnam, Pakistan, and the United States combined.
Also read: Fresh fruits export surged by 29% from April to December 2023
Price Trends Analysis
- Global Competitiveness: High domestic stocks and low local prices have allowed India to offer rice at competitive prices in the global market.
- Varietal Superiority: Specific rice varieties, especially basmati rice, are highly sought after globally, with India holding an 85% share in the global basmati export market.
Key Trends Driving the Indian Rice Market
Increasing Global Demand
- Export Potential: India supplies rice to over 150 countries, leveraging its high production capacities and competitive pricing.
- Variety Superiority: Basmati rice, known for its unique aroma and taste, has seen a surge in demand, particularly from countries like Saudi Arabia and Iran.
Production Capacity Enhancement
- Growth Trajectory: India’s total rice production has increased significantly over the past few years, reaching over 195 million metric tons in 2021.
- Government Support: Supportive government policies, favorable monsoons, and the rise of rice processing industries have contributed to the growth in production.
Also read: 10 popular organic rice brands in India
Recent Developments and Future Outlook
Government Initiatives
- Export Policy Amendment: The Government of India has prohibited the export of broken rice to increase domestic availability amid rising demand from the poultry industry and ethanol production.
- Foreign Investments: Countries like the United Arab Emirates are investing in India to develop food parks, aiming to enhance food security in South Asia and the Middle East regions.
Environmental Sustainability
- Emission Reduction Agreement: Agreements like the one between Vida Carbon Corp. and Core CarbonX Solutions Pvt. Ltd. aim to improve cultivation and water management practices among rice farmers, ultimately boosting production.
Conclusion
India’s rice industry is thriving, buoyed by increasing global demand, enhanced production capabilities, and favorable government policies. The country’s diverse range of rice varieties and competitive pricing have solidified its position as a key player in the global rice market. India’s status as the world’s largest rice exporter underscores its pivotal role in meeting global rice demands. As India continues to enhance its production processes and adapt to evolving market dynamics, the outlook for its rice industry remains promising.
Source: Internet
Visit Kazirangatimes home page for more updates!
