Indian Rice Market Size
|Base Year For Estimation||2022|
|Forecast Data Period||2023 - 2028|
|Market Size (2023)||USD 51.58 Billion|
|Market Size (2028)||USD 58.07 Billion|
|CAGR (2023 - 2028)||2.40 %|
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Indian Rice Market Analysis
The India Rice Market size is expected to grow from USD 51.58 billion in 2023 to USD 58.07 billion by 2028, at a CAGR of 2.40% during the forecast period (2023-2028).
- According to the FAO, rice production in India accounted for 178.3 million metric tons in 2020. The cultivation of high-yielding rice varieties such as IR 64, CR 2301, Kudrat 5, etc., makes India the second-largest rice producer in the world after China, with more than 11.0% of the global production share. Rice production in the country has increased by 3.5 times in the last 60 years. According to the Rice Exporters Association, Indian rice exports touched 20 million tons in 2021, including 16 million tons of non-Basmati rice. Rice being an essential commodity, no country imposed restrictions on its import, making the country to become the top exporter of rice in the world. The overall production was ample enough to support exports of around 16 million tons of non-Basmati rice. Higher demand for Indian rice from the North American and European regions in recent years and good climatic conditions are supporting the growth of the Indian rice market.
- The timely onset of monsoons, such as South Western monsoons and North Eastern monsoons in India, is a major driver for high rice production. This also results in higher productivity than in other Asian countries such as Thailand and Indonesia, as these countries are affected due to fluctuating rainfall causing floods and drought. The major rice-producing states in India are West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Haryana, Tamil Nadu, Odisha, and Bihar.
Indian Rice Market Trends
Increasing Demand for Indian Rice
- Due to its high production capacities, the country has gained high export potential supplying rice to over 150 countries. Furthermore, high domestic stocks and low local prices have allowed the country to offer rice at cheaper prices in the global market over the past few years. The country's rice exports in 2021 have crossed 21 million metric ton, which is more than the combined exports of the next four biggest exporters in the world, Thailand, Vietnam, Pakistan, and the United States. The rice exports of the country have increased by over 20 million metric tons during the period 2018-2021 according to the ITC Trade Map. As rice is an important staple food for over 3 billion people, the demand for Indian rice has increased over the period making many countries depend on the country to meet their food security needs.
- Specific rice varieties in India such as basmati are known to be one of the best varieties of rice in the world, known for its sleek, slender, tapering grains with unique aroma and taste and its grain elongation quality upon cooking. Export of this premium variety from India has an 85% share in the global basmati export market. The import of this variety in Saudi Arabia from India has increased by over 150% reaching over 1,099 million metric tons in the year 2020. According to the ITC Trade map, Iran and Saudi Arabia account for about 40% of basmati rice exports from India on average.
- Hence, the increasing demand for indian rice along with specific varities such as basmati rice in various parts of the world, highh domestic production and low local prices of rice increasing the rice trade are anticipated to drive the growth of indian rice market in the coming years.
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Enhancing Production Capacities
- India is one of the top ten rice-producing countries in Asia-Pacific, which is endowed with a wet environment suitable for rice cultivation. Rice-based farming is the main economic activity for hundreds of millions of rural farmers in the region, with major rice varieties grown in India, including parboiled rice, broken rice, Sella rice, Swarna rice, Sona Masoori rice, etc.
- India is well-known for both basmati and non-basmati rice production. There was an increase of over 21 million metric ton in total rice production during the period 2018 - 2021 reaching over 195 million metric ton in 2021 and is projected to grow further due to the wider adoption of high-yielding rice varieties in the country. The increasing production is further fueled by the growing demand for rice from countries across the world. In addition to this, support from the government, favorable monsoons, the rising number of rice processing industries, etc have positively affected the production of rice in the country in the past few years.
- Furthermore, the growing consumption of rice in emerging and developing nations across the world is anticipated to drive the production of rice during the forecast period.
Indian Rice Market News
- September 2022: The Government of India has prohibited the export of broken rice through an amendment made to the export policy, which is aimed at increasing the domestic availability of broken rice amid rising demand from the poultry industry and increasing ethanol production as part of Ethanol Blended Petrol (EBP) program in the country.
- July 2022: United Arab Emirates has announced an investment of over USD 2.0 billion in India aimed at developing food parks in the country to increase food security in South Asia and the Middle East regions. The food parks are aimed at developing relations between farmers, processors, and retailers by using advanced climate technology to maximize yields in rice, onion, and potatoes as a priority.
- June 2022: Vida Carbon Corp. signed an Emission Reduction Purchase Agreement with Core CarbonX Solutions Pvt Ltd, an established climate and sustainability consulting firm based in India. The agreement is aimed at improving the cultivation and water management practices of rice farmers on over 100,000 hectares in the state of Telangana in four phases, thereby increasing production.
Indian Rice Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
5. MARKET SEGMENTATION
5.1 Production Analysis (Volume)
5.2 Consumption Analysis (Value and Volume)
5.3 Import Analysis (Value and Volume)
5.4 Export Analysis (Value and Volume)
5.5 Price Trend Analysis
6. REGIONAL ANALYSIS
6.1 PESTLE Analysis
6.2 Government Policies and Regulations
6.3 Value Chain Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Indian Rice Market Research FAQs
How big is the India Rice Market?
The India Rice Market size is expected to reach USD 51,577.53 million in 2023 and grow at a CAGR of 2.40% to reach USD 58,071.14 million by 2028.
What is the current India Rice Market size?
In 2023, the India Rice Market size is expected to reach USD 51,577.53 million.
Rice in India Industry Report
Statistics for the 2023 Rice in India market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Rice in India analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.