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Rice exporters have placed India at the forefront of the global rice export, making it the world's largest rice exporter. India’s rise in the rice export market is not just a result of favorable climatic conditions but a well-executed strategy blending agricultural expertise, competitive pricing, and diversified market destinations. Over the last decade, India has leveraged its agricultural capacity to transform rice into a key export commodity, gaining dominance in markets across Asia, Africa, and beyond.
India’s rice production has experienced consistent growth, jumping from 129.4 million tonnes in FY 2021-22 to 137 million tonnes in FY 2023-24, according to a DGCIS analysis. This surge in production has not only secured India's food needs but also fueled its rise as the largest rice exporter globally. Between 2021 and 2023, India accounted for 40% of global rice exports, outpacing traditional competitors such as Pakistan and Thailand.
India's rice exports consist of two primary categories: Basmati and non-Basmati rice. Basmati, India’s “crown jewel,” is highly sought after for its aroma and premium quality, particularly in markets like Saudi Arabia, Iraq, and the UK. In FY 2023-24, India exported 5.24 million tonnes of Basmati rice, marking a 14.93% increase from previous years.
On the other hand, non-Basmati rice, while essential to India's export portfolio, has encountered challenges. A significant drop in exports was recorded in FY 2023-24 due to India’s temporary ban on non-Basmati rice exports to stabilize domestic prices. Despite these setbacks, non-Basmati rice still dominated in terms of sheer volume, with exports totaling 111.16 lakh tonnes in FY 2023-24, overshadowing Basmati rice exports.
India’s traditional rice export markets, primarily in the Middle East and South Asia, continue to remain stable. However, a diversification trend is becoming evident. The share of exports to the top 10 rice-importing nations has declined from 80% in FY 2021-22 to 77.5% in FY 2023-24. This reflects India’s strategic push to tap into new markets and reduce reliance on a few large buyers. New markets such as Somalia, Djibouti, and the UAE have emerged as key importers of Indian non-Basmati rice.
India’s success as a global rice exporter can be attributed to multiple factors. First, its ability to offer competitive pricing while maintaining quality has helped capture large market shares. Basmati rice, in particular, has gained international recognition for its premium, aromatic qualities.
Second, India’s robust trade infrastructure, bolstered by government policies that promote agricultural exports, has enabled it to maintain its leadership. Investments in port facilities, warehousing, and transportation have streamlined rice exports, ensuring timely deliveries to global markets.
Rice exporters in India face numerous challenges despite their global success. Climate change poses a significant risk to rice production, with unpredictable weather patterns such as droughts threatening crop yields. Moreover, policy volatility, including sudden export bans, creates uncertainty in the international market, potentially driving buyers toward more stable suppliers like Thailand and Vietnam.
To sustain its growth, India must enhance its agricultural resilience, invest in better infrastructure, and leverage digital platforms for real-time market intelligence. Strengthening these areas will enable Indian rice exporters to continue meeting global demand and expanding their market presence.
India’s status as the world’s largest rice exporter is both an opportunity and a challenge. As global export-import dynamics evolve, India’s ability to adapt its strategies, diversify its markets, and navigate climate risks will determine its long-term success. Rice exporters will play a crucial role in maintaining India’s leadership, balancing domestic needs with international market demands.
India’s surge in rice exports is a result of its strategic market positioning, competitive pricing, and robust production capacity. Despite challenges, India has emerged as a leader in the global rice market, offering both Basmati and non-Basmati rice to meet the diverse needs of international buyers. Moving forward, sustained investment in infrastructure, climate-resilient farming, and digital trade platforms will be crucial to maintaining its competitive edge.
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Reference- SmeFutures.com
