Rice is one of the world’s most essential staple crops, providing a source of food for billions of people. The rice market industry is evolving, with innovations and trends such as the emergence of organic and specialty rice and rising demand for convenience and packaged rice products. The sector has also experienced challenges such as fluctuating rice prices, shifting customer tastes, and competition from other grain commodities.
Size of Rice Market in India
With an expected market value of over US$50 billion in 2021. The rice market in India is one of the largest in the world. India is the largest producer and consumer of rice globally. Rice is a staple food for over half of the country’s population. The demand for rice is driven by an increasing population and rising incomes. The Indian government also assists the rice sector through a variety of measures, including the promotion of high-yielding rice varieties and building infrastructure for rice storage and transportation.
According to the Food and Agriculture Organization of the United Nations (FAO) rice production in India was approximately 116 million tonnes in 2021. The average production is roughly 3.3 metric tonnes per acre.
Over 60% of the country’s total rice area is cultivated by farmers with less than 2 hectares of land. Small and medium-sized farms are the predominant producers of rice in India.
Trends in the Rice Industry
The rice market in India will continue to grow in the coming years, driven by increasing populations and rising incomes. The following are some of the key trends and factors that impact the Indian rice market from 2023 to 2028:
- Growing demand for organic and healthy rice in rice market industry- There is an increasing demand for organic and healthy rice varieties. Such as ponni rice, brown rice, and red rice as consumers become health-conscious.
- Increasing exports – India continues to be a major player in the global rice export market, driven by demand for Indian Basmati rice and other high-quality rice varieties.
- Technological advancements in rice cultivation –The adoption of modern farming techniques, such as precision agriculture and GPS-based planting and harvesting systems, is expected to increase yields and reduce waste in the Indian rice industry.
- Government support- The government of India is expected to continue to support the rice market. Various initiatives such as the promotion of high-yielding rice varieties and the development of infrastructure for the storage and transportation of rice are taken.
- Competition from other staple crops –Rice is facing increasing competition. Other staple crops which include maize, wheat, and sorghum, as consumers look for alternatives to traditional staple foods.
Major players in the Industry
- India: India is the largest producer and consumer of rice globally. It is home to some of the largest rice milling and trading companies in the world, such as India Gate, KRBL Ltd., and Jai Bharat Rice Mills.
- Thailand: Thailand is the largest exporter of rice in the world. It is home to some of the largest rice trading companies, such as Thai Hua Rice Co. Ltd., AP Rice, and Siam Indica Co. Ltd.
- Vietnam: Vietnam is one of the large exporters of rice globally. It is home to major rice milling and trading companies, such as Vinaseed, Hiep Thanh Co. Ltd., and Vissan.
- China: China is a large producer and consumer of rice. The rice industry in China is dominated by state-owned enterprises, such as China National Cereals, Oils, and Foodstuffs Corporation (COFCO).
- United States: The United States is a major producer of rice, primarily in the southern states. It is home to large rice milling and trading companies, such as RiceTec, Riceland Foods, and Producers Rice Mill.
A word from AMK Krishna
Overall, rising demand for rice varieties increased exports, and technical developments in rice production will contribute to the Indian rice market’s continuous growth. We effectively incorporate modern technology to provide both quality and quantity of rice at an affordable price and are one among the top 10 rice brands in Tamilnadu. We offer a wide range of rice varieties from ponni rice to idly rice to choose from, order yours right away!
