India’s rice exports have soared in recent years, positioning the country as the world’s top rice exporter.
While China leads in rice production, India’s dominance in the export market has solidified its role as a key player on the global stage.
This growth has been driven by a steady rise in production, an expanding market for premium Basmati rice, and strategic diversification of export destinations.
India’s rice success also faces significant challenges, including climate risks, policy volatility, and increasing competition from other rice-producing nations.
India’s rice production surges to record highs in FY 2023-24
India’s rice production hit 137 million tonnes in FY 2023-24, a notable increase from 129.4 million tonnes in FY 2021-22, according to a DGCIS report.
This surge has allowed India to not only satisfy domestic demand but also expand its export share globally.
India now accounts for nearly 40% of the world’s rice exports, outpacing rivals like Pakistan and Thailand.
Such growth reflects India’s strategic focus on rice as a critical component of its agricultural and export policy.
Basmati rice exports grow 22.05% in FY 2023-24
India’s Basmati rice, renowned for its premium quality and aroma, continues to see strong demand globally.
In FY 2023-24, Basmati rice exports totalled 5.24 million tonnes, a significant rise from 3.94 million tonnes in FY 2021-22.
This 14.93% growth in volume, combined with a 22.05% increase in export value, underscores the growing appetite for Basmati in markets like Saudi Arabia, Iraq, and the UK.
The increase in demand reflects India’s ability to leverage the unique qualities of Basmati rice in a competitive export landscape.
Non-Basmati rice exports face a 37.52% decline in FY 2023-24
Despite India’s overall success in rice exports, non-Basmati rice has faced considerable setbacks.
Exports fell by 37.52% in volume and 28.05% in value during FY 2023-24, primarily due to India’s decision to halt non-Basmati exports in July 2023 to stabilise domestic prices.
The export ban, aimed at controlling domestic inflation, led to a sharp decline in international sales.
Nevertheless, non-Basmati rice still represents a significant portion of India’s overall rice production and remains a key export commodity.
India expands rice exports beyond traditional markets
While the Middle East and South Asia remain the largest buyers of Indian rice, India has been actively diversifying its export destinations.
The share of exports to the top 10 destinations dropped from 80% in FY 2021-22 to 77.5% in FY 2023-24, signalling India’s efforts to enter new markets.
Non-Basmati rice exports, for instance, have shifted towards African nations like Somalia and Djibouti, as well as other emerging markets.
This diversification helps mitigate the risks associated with reliance on a few key buyers.
India captures 46% of the global rice export market in 2023
India’s competitive pricing and high-quality rice have allowed it to capture nearly 46% of the global rice export market in 2023.
The country’s dominance is attributed to its ability to produce high volumes at lower costs, strong government support, and efficient trade infrastructure.
These factors give India a significant edge over competitors like Pakistan, Thailand, and Vietnam.
Maintaining this leadership requires India to navigate challenges such as climate change, export policies, and shifting global demand.
India’s continued success in the global rice market depends on addressing several key challenges.
Investments in climate-resilient rice varieties, improvements in export infrastructure, and a focus on digital platforms for market intelligence will be crucial.
Managing policy volatility, particularly regarding export bans, will be necessary to ensure consistent international market presence.
By adopting these strategies, India can maintain its status as a global rice powerhouse and ensure long-term growth in its agricultural sector.
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