Overall exports of Basmati and Non-Basmati rice have increased
The growth in Indian rice exports reflects a robust demand for basmati rice, driven by its superior quality and unique aroma. Basmati rice, known for its long grains and distinctive flavor, continues to be a preferred choice in international markets. Indian rice exports have started in the current financial year on a positive note, with shipments witnessing a significant increase of around 10% during the first two months. The volume of rice exports reached over 3.67 Million Tonnes, compared to 3.36 Million Tonnes during the same period last year, mainly fuelled by robust demand for basmati rice.
Basmati rice shipments experienced a noteworthy surge, rising by 21% to reach 0.83 Million Tonnes compared to 6.85 Million Tonnes a year ago. Similarly, non-basmati rice exports demonstrated a steady growth of 6%, reaching 2.84 MT as African and West Asian countries increased their purchases.
Basmati rice exports to West Asia registered a 13% increase, reaching 0.615 Million Tonnes compared to 0.54 Million Tonnes the previous year. West Asia is a primary market for this aromatic variety. Furthermore, non-basmati rice exports also experienced growth in the African and West Asian markets during April – May, with shipments reaching 2.1 Million Tonnes and 0.22 Million Tonnes respectively. In Monetary terms, exports to West Asia saw a substantial rise of 22% at USD 665 Million, compared to USD 545 Million during the same period last year. Asian countries such as Bangladesh, Bhutan, and Nepal also increased their purchases, with volumes rising to 15.4k Tonnes from 6.9k Tonnes.
Expanding European markets by doubling exports and government efforts to increase exports
Basmati shipments to the European Union more than doubled; reaching 41.6k Tonnes compared to 16.4k Tonnes, driven by demand from the Netherlands, Germany, Italy, and Belgium. The export value of basmati rice to the EU during April – May also increased significantly, by 196% at USD 52.61 Million compared to USD 17.74 Million.
Despite certain restrictions, the demand for Indian rice remains strong, contributing to the overall export growth. B.V. Krishna Rao, President of The Rice Exporters Association, acknowledged the positive trend and highlighted the continuous growth despite the imposition of export restrictions, such as the curbs on 100% broken rice and the 20% duty on white and brown rice exports, implemented since September 8, 2022.
The government’s efforts to promote agricultural exports and tap into new markets have yielded fruitful results. Despite the challenges posed by export restrictions and duties, the Indian rice industry remains resilient and adaptable, capitalizing on opportunities to meet global demand.
As the year progresses, stakeholders in the Indian rice sector remain optimistic about sustaining the export momentum. The industry’s focus on quality, diversification of markets and innovative marketing strategies will continue to drive growth and reinforce India’s position as a leading rice exporter in the international market.