India rice market is projected to register at a CAGR of 2.7% during the forecast period (2021-2026).
The COVID-19 has resulted in increasing consumption of rice due to changes in health habits in the country. However, travel restrictions have shown a slight impact on the market.
According to the FAO, the rice production in India was 177.6 million metric tons in 2019. India is the second-largest rice producer in the world after China, with more than 11.0% of the global production share. The cultivation of high-yielding rice varieties such as IR 64, CR 2301, Kudrat 5 and others, leads India as 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. Higher demand for Indian rice from North America and European regions coupled with good climatic conditions are supporting the growth of the market. This also results in higher productivity than other Asian countries such as Thailand and Pakistan. Major rice-producing states in India are West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Tamil Nadu, Odisha, and Bihar.
Key Market Trends
High Demand for the Indian Rice across the Globe
According to ITC trade Map, In 2019 India has been the top exporter in the global rice trade, accounting for 29.3% of the global rice exports. According to the ITC Trade Map, Iran, Saudi Arabia, Iraq, United Arab Emirates, and other middle east countries are the major importers of rice from India. There is a high demand for the Indian basmati rice variety in the European Union and the United States which is further boosting the rice export from India.
With the increasing demand for rice globally, exports are increasing from India. There is a growth of 6.0% per annum in the exports values between 2016-2019. The country exported 9,819.0 thousand metric ton of rice in 2019. Furthermore, the growing consumption of rice in emerging and developing nations across the world may drive the growth of rice exports during the forecast period.
Enhancing Production Capacities
India is one of the top ten rice-producing countries in the 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 poor rural farmers in the region.
The major rice varieties grown in India include parboiled rice, broken rice, Sella rice, Swarna rice, Sona masoori rice with a share value of 12.9%, 5.3%, 2.2%, 1.5%, and 1% respectively. India is well-known for both basmati and non-basmati rice production. There is an increase of 8.5% in the total rice production from 2016-2019 and projected to grow further due to the wider adoption of high-yielding rice varieties in the country.
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