Rice has been an integral part of Indian culture and tradition for ages, representing prosperity, rituals, and celebrations. From being a part of auspicious ceremonies to everyday meals, rice holds an emotional and spiritual bond with millions of Indian households. There has been a growth in Indian rice brands diversifying their export markets, and significant focus is seen on emerging markets in Africa, South-East Asia, and Latin America. However, demand for Indian rice is growing in its traditional markets—the Middle East, USA, and Europe. Also, the Iran-Israel conflict and other geopolitical issues have driven the migration of people, and so, demand for staple foods, such as rice, has increased. Indian exporters have taken advantage of these opportunities by navigating the global complexity and have successfully established themselves as reliable suppliers of premium rice in various global markets.

Understanding India’s dominance in rice production and exports

India has emerged as the world’s largest rice exporting country, accounting for almost 40 per cent of the total rice exports of the world from 2021 to 2023. On the other hand, India had an edge over its competitors, Pakistan and Thailand, with tremendous growth in the production of rice. The country’s output had changed from 129.4 million metric tons during FY 2021-22 to 137 million tonnes during FY 2023-24. This upward path has been one of the pillars of the upsurging export ambitions of India.

Basmati rice is a major driver of growth for the industry. Known for its long grains and its distinct flavour with an appealing aroma, it has remained one of the popular choices around the world for many years. Basmati rice exports out of India have exceeded 5.24 million tonnes in FY 2023-24 against 3.94 million tonnes in FY 2021-22. This expansion saw a year-on-year volume increase of 14.93 per cent, while export value also increased by 22.05 per cent. This sector accounts for 1.34 per cent of the Indian total export basket, thereby showcasing its relevance within the Indian portfolio.

Several factors contributing to this strategic expansion:

Quality standards and certifications: Indian rice brands are aligning with global quality standards and obtaining certifications such as ISO 22000 and HACCP. These certifications enhance credibility and ensure compliance with stringent import regulations in new markets.

Customised packaging and branding: Exporters are adopting region-specific packaging and marketing strategies to cater to local tastes and preferences, thus creating a stronger appeal.

Trade agreements and policy support: Favourable government policies, including subsidies and trade agreements, have provided exporters with easier access to untapped markets.

Logistics and supply chain improvements: Enhanced infrastructure and partnerships with global logistics providers have streamlined transportation, ensuring timely deliveries and reduced costs.

Innovation and sustainability driving growth

Indian rice brands are also focusing on innovation to build a greater presence in international markets. They have seen an increase in popularity among conscious environmental consumers in the form of eco-friendly packaging, organic varieties, and pesticide-free rice. Investments in sustainable agriculture practices—saving water, ensuring soil health, and much more—complement the global momentum toward sustainability.

In addition, digital marketing and e-commerce have also allowed exporters to reach direct overseas consumers instead of relying on traditional distribution channels. Online marketplaces have, therefore, led to niche markets, allowing even smaller exporters to compete on a global scale.

Challenges and solutions

Despite its remarkable success, India’s rice export industry faces several challenges. Geopolitical tensions, fluctuating global prices, and climate change are some of the potential risks. In addition, some importing countries have more stringent pesticide limits, which calls for constant improvements in farming practices and testing standards.

To address these challenges, exporters are now focusing on the development of technology and research for higher-quality yield and sustainability. International regulatory bodies and trade associations are also being consulted to overcome compliance barriers.

India’s rice export industry stands testimony to the agricultural strength of the country and its expertise in international trade. Having a long heritage in rice cultivation and with proactive diversification, Indian rice brands are ready to exploit new and emerging markets. Quality, sustainability, and innovation continue to propel growth and strengthen India’s role as a world leader in rice exports. This makes Indian rice brands not only spread their business presence but also serve the world and generate economic prosperity.

The author is Joint Managing Director, DRRK Foods