India has solidified its position as the world’s leading rice exporter, leveraging its robust agricultural infrastructure, diverse rice varieties, and competitive pricing to capture a significant share of the global market. With a rich history of rice cultivation and a strategic focus on both premium Basmati and high-volume non-Basmati rice, India accounts for nearly 40-46% of global rice exports, outpacing competitors and meeting the dietary needs of billions worldwide. This article explores India’s dominance in the rice industry, its major competitors, export volumes of Basmati and non-Basmati rice, key export markets, and the latest performance figures for the current financial year (FY 2024-25).

India’s Dominance in the Global Rice Industry

India’s rise to the top of the global rice export market is driven by several key factors:

High Production Capacity: India is the second-largest rice producer globally, with production reaching 137 million metric tons (MMT) in FY 2023-24, up from 129.4 MMT in FY 2021-22. This ensures a steady supply for both domestic consumption and exports.

Diverse Rice Varieties: India’s portfolio includes premium Basmati rice, renowned for its aroma and long grains, and non-Basmati rice, a cost-effective staple for many countries. Basmati caters to high-value markets, while non-Basmati dominates in volume.

Competitive Pricing and Quality: Indian rice is competitively priced, with Basmati fetching premium rates and non-Basmati offering affordability. Investments in agricultural technology and infrastructure have enhanced quality and yield.

Policy Support: Recent policy changes, such as the removal of the minimum export price (MEP) on Basmati rice in September 2024 and the lifting of the non-Basmati white rice export ban, have boosted India’s competitiveness.

Diversified Markets: India exports rice to over 150 countries, with a focus on the Middle East, Africa, and Southeast Asia, reducing reliance on traditional markets like Bangladesh and China.

India’s share in global rice exports has grown from 36% in 2022 to 46% in 2023, reflecting its ability to navigate challenges like climate risks and policy volatility.

Major Competitors in Rice Exports

While India leads the global rice trade, it faces competition from several countries:

Thailand: The second-largest rice exporter, Thailand shipped 7.5 MMT of rice in 2024-25, valued at approximately $5.7 billion, holding a 14.2% share of the global market. Thai rice, particularly Jasmine, is known for its quality and competes with India’s Basmati in premium markets.

Vietnam: With 7.5 MMT exported in 2024-25, valued at $5.7 billion, Vietnam holds a 14.2% market share. Its high-quality, competitively priced rice appeals to cost-sensitive markets in Africa and Asia.

Pakistan: The fourth-largest exporter, Pakistan exported 6 MMT of rice in 2023-24, including 0.75 MMT of Basmati, generating $3.9 billion. Pakistan competes directly with India in the Basmati segment, holding a 35% share of global Basmati exports.

United States: The U.S. exported $2.43 billion worth of rice in 2024-25, with a 6.2% market share. Its California medium-grain rice commands premium prices but targets different markets than India’s Basmati.

Cambodia and Myanmar: Cambodia exported $1.88 billion (4.8% share) and Myanmar $1.34 billion (3.4% share) in 2024-25, focusing on fragrant and regional varieties.

These competitors challenge India through quality, pricing, or niche offerings, but India’s scale, variety, and infrastructure give it a significant edge.

Export Volumes: Basmati and non-Basmati Rice

India’s rice exports are divided into Basmati and non-Basmati categories, each serving distinct markets and purposes.

Basmati Rice Export Volumes

Basmati rice, a premium product, is primarily exported to high-value markets in the Middle East, Europe, and North America. Export volumes and values for the last three financial years are:

FY 2021-22: 3.94 MMT, valued at $3.54 billion.

FY 2022-23: 4.56 MMT, valued at approximately $4.8 billion.

FY 2023-24: 5.24 MMT, valued at $5.83 billion, a 14.93% increase in volume and 22.05% in value from FY 2021-22.

The removal of the MEP in September 2024 has spurred a 20% increase in Basmati exports during April-July 2024 (1.9 MMT) compared to the same period in FY 2023-24.

Non-Basmati Rice Export Volumes

Non-Basmati rice dominates in volume, catering to price-sensitive markets in Africa and Southeast Asia. Export volumes faced setbacks in FY 2023-24 due to a temporary export ban:

FY 2021-22: 16 MMT, valued at approximately $6 billion.

FY 2022-23: 17.78 MMT, valued at $7.03 billion.

FY 2023-24: 11.12 MMT, valued at $5.1 billion, a 37.52% decline in volume and 28.05% in value due to the July 2023 export ban.

The lifting of the non-Basmati white rice export ban in September 2024, with a new MEP of $490 per ton, is expected to boost volumes in FY 2024-25.

Biggest Export Markets

India’s rice exports are geographically diverse, with key markets varying by rice type.

Basmati Rice Markets (FY 2023-24)

Iran: 25.3% of exports (1.33 MMT).

Saudi Arabia: 17.1% (0.90 MMT).

Iraq: 12.3% (0.64 MMT).

United Arab Emirates: 6.5% (0.34 MMT).

United States: 4.1% (0.21 MMT).

Others: Nepal, Bhutan, UK, Kuwait, and Yemen are emerging markets, with Nepal and the U.S. accounting for 19-21% of shipments from November 2023 to October 2024.

Non-Basmati Rice Markets (FY 2023-24)

Somalia, Djibouti, and UAE: Emerging as top destinations after traditional markets like Bangladesh, China, and Nepal declined due to the 2023 export ban.

Benin, Guinea, Togo, and Vietnam: Significant increases in market share in FY 2023-24.

Philippines and Malaysia: Rebounded as key markets in FY 2024-25 following the lifting of export restrictions.

The top 10 non-Basmati destinations accounted for 56.15% of exports in FY 2023-24, down from 60.25% in FY 2021-22, indicating market diversification.

Annual Business Volumes (Last Three Years)

FY 2021-22: Total rice exports were 20 MMT (3.94 MMT Basmati, 16 MMT non-Basmati), valued at $9.54 billion.

FY 2022-23: Total exports reached 22.34 MMT (4.56 MMT Basmati, 17.78 MMT non-Basmati), valued at $11.83 billion.

FY 2023-24: Total exports dropped to 16.34 MMT (5.24 MMT Basmati, 11.12 MMT non-Basmati) due to the non-Basmati ban, valued at $10.93 billion.

Performance in FY 2024-25 (Till Date)

As of the latest published figures (up to July 2024), India’s rice exports in FY 2024-25 have shown strong recovery:

Total Exports: 19.86 MMT, surpassing the 16.35 MMT of FY 2023-24, driven by the removal of export restrictions.

Basmati Exports: 1.9 MMT from April to July 2024, a 20% increase from the same period in FY 2023-24, valued at approximately $2 billion.

Non-Basmati Exports: Expected to rebound significantly post-September 2024 due to the lifting of the export ban, with early estimates suggesting a return to 15-17 MMT annually.

Total Value: Rice exports reached $12 billion in FY 2024-25 (up to April 2025), reflecting a 13% increase in Agri and processed food shipments.

The International Grains Council (IGC) projects India’s exports to account for over a third of the global rice trade (59.9 MMT) in 2024-25, driven by demand from Africa and Southeast Asia.

Challenges and Future Outlook

Despite its dominance, India faces challenges such as climate risks (e.g., 2024 floods in Punjab and Haryana), policy volatility, and competition from Thailand, Vietnam, and Pakistan. Investments in climate-resilient varieties, port infrastructure, and digital trade platforms are critical for sustaining growth.

India’s rice industry is poised for continued leadership, with Basmati exports projected to grow at a CAGR of 2-9% through 2034, reaching a market value of $7.73-$26.89 billion. Non-Basmati exports are expected to recover to pre-ban levels, supported by favorable monsoons and policy reforms.

Conclusion

India’s dominance in the global rice industry is underpinned by its production scale, diverse offerings, and strategic market expansion. While competitors like Thailand, Vietnam, and Pakistan challenge specific segments, India’s 40-46% share of global rice exports and its ability to cater to both premium and mass markets ensure its leadership. With robust policy support and growing demand in Africa, Southeast Asia, and the Middle East, India’s rice exports are set to maintain their upward trajectory, reinforcing the nation’s role as the world’s grain powerhouse.