India Rice Market Report

India Rice Market Size:

The India rice market size is projected to exhibit a growth rate (CAGR) of 2.2% during 2024-2032. The increasing domestic consumption, rising exports, government support, ongoing technological advancements in farming, expanding cultivation areas, improved irrigation infrastructure, and a growing population demanding staple foods are some of the key factors impelling the market growth.

India Rice Market Analysis:

• Major Market Drivers: The country's large agricultural base, with rice being a staple food for the majority of the population is the prime factor driving market growth. Besides this, government policies, including subsidies and minimum support prices (MSP), play a crucial role in supporting farmers and ensuring stable production. Furthermore, the increasing demand for rice, both domestically and in export markets, fuels the market expansion.
• Key Market Trends: The growing demand for premium and organic rice varieties, such as basmati, which has led to a rise in production tailored to meet international export standards is one of the prominent market trends. Additionally, the rising consumer preference for healthier, low-carb alternatives within the rice category is acting as another significant growth-inducing factor. Moreover, ongoing technological advancements in irrigation, crop management, and milling techniques improving yield and efficiency and aligning with the government’s push for agricultural modernization are propelling the market forward.
• Geographical Trends: Major rice-producing states like West Bengal, Uttar Pradesh, and Punjab dominate the market, owing to their favorable climate, water resources, and well-established infrastructure for rice cultivation. However, India’s rice export hubs are located near coastal regions like Andhra Pradesh and Tamil Nadu, which benefit from proximity to ports, facilitating smoother international trade.
• Competitive Landscape: The competitive landscape of the market has been examined in the report, along with the detailed profiles of the major players operating in the industry.
• Challenges and Opportunities: The market witnessed certain challenges, such as fluctuation in the monsoon patterns, which significantly impact crop yields and quality, along with water scarcity concerns in certain regions. Concurrently, small-scale farmers face issues related to inadequate access to modern technologies. However, the global push for sustainable farming and the demand for high-quality rice varieties provide significant growth opportunities, especially in niche segments such as organic and specialty rice markets.

India Rice Market Trends:

Increasing domestic demand and consumption

India is among the world's top rice consumers. Much of the Indian population relies on rice as a staple diet, and as the nation's population grows, so does the demand for rice. This trend has also been influenced by rapid urbanization and shifting dietary habits, with a growing middle class consuming more rice because it is inexpensive and convenient. Furthermore, rice is a crucial component of India's Public Distribution System (PDS), which aims to ensure food security by providing subsidized food grains to low-income families. This government initiative further boosts domestic demand as rice remains a staple food item distributed through the PDS network. Furthermore, the increase in per capita income also plays a crucial role in bolstering the India rice market growth, as consumers can now afford higher-quality rice varieties.

Rising exports of rice

India is one of the largest exporters of rice in the world, particularly basmati and non-basmati varieties. Indian rice is highly sought after in countries due to its quality and competitive pricing. The country's strategic trade agreements and robust export policies have facilitated access to these international markets, further boosting export volumes. Additionally, higher export earnings have resulted from the world's preference for basmati rice, an expensive variety that is predominantly grown in India. Recent developments in export infrastructure, such as improved storage and transportation facilities, have also contributed to the growth of rice exports. The government's initiatives to promote rice exports through incentives and by addressing logistical bottlenecks have enhanced nation’s position in the rice market, thus propelling the Indian rice demand.

Advancements in agricultural practices and technology

Technological and agricultural practice advancements have increased productivity and efficiency, aiding in market expansion. The adoption of high-yield rice varieties, better pest management, and efficient irrigation techniques have led to higher production levels. The introduction of hybrid rice varieties and genetically modified crops has increased resistance to pests and diseases, resulting in better crop yields. Moreover, the use of precision farming technologies, such as global positioning systems (GPS) and remote sensing, allows farmers to optimize resource use, reduce waste, and improve crop management practices. In line with this, government initiatives offering subsidies and training for modern farming techniques are providing an impetus to the market growth. Additionally, the development of digital platforms for market information, weather forecasting, and access to credit has empowered farmers to make informed decisions, thereby positively impacting the India rice market outlook.

India Rice Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2024-2032. Our report has categorized the market based on product type, type, grain size, distribution channel, and application.

Breakup by Product Type:

• Regular
• Aromatic
   

The report has provided a detailed breakup and analysis of the market based on the product type. This includes regular and aromatic.

Based on the India rice market research report, regular rice, also known as non-aromatic rice, is a staple food in the country and is widely consumed for its affordability and versatility. It includes varieties like Sona Masuri and IR64. Regular rice is primarily grown for domestic consumption and forms a significant part of the PDS.

Besides this, aromatic rice, such as basmati, is known for its distinctive fragrance and long grains, making it a premium product in both domestic and international markets. Aromatic rice, which is prized for its distinct flavor and superior quality, fetches higher prices and is frequently used in specialty meals, which considerably increases demand for exports.

Breakup by Type:

• Red Rice
• Arborio Rice
• Black Rice
• Grain Fragrance Rice
• Brown Rice
• Rosematta Rice
• Grain Parboiled Rice
• Sushi Rice
• Others
   

A detailed breakup and analysis of the market based on the type have also been provided in the report. This includes red rice, arborio rice, black rice, grain fragrance rice, brown rice, rosematta rice, grain parboiled rice, sushi rice, and others.

India's rice market forecast shows that red rice, a whole grain rice known for its reddish hue comes from its high anthocyanin content. It is rich in fiber, vitamins, and minerals, making it popular for health-conscious consumers.

In contrast, arborio rice is a short-grain rice variety primarily used in Italian dishes like risotto. It is known for its high starch and has a creamy texture when cooked. It is less common in Indian cuisine but is gaining popularity in gourmet cooking and specialty restaurants.

Moreover, black rice also known as forbidden rice, is a nutrient-dense rice variety rich in antioxidants, especially anthocyanins. It has a deep black color that turns purple when cooked and offers a slightly nutty taste. Black rice is increasingly popular in India for its health benefits and unique flavor.

Besides this, grain fragrance rice, often referred to as fragrant or jasmine rice, is prized for its aromatic qualities and slightly sticky texture. Although not traditionally part of Indian cuisine, it is gaining popularity due to its distinct floral aroma and softness, making it a preferred choice for special dishes.

Brown rice is a whole grain rice with the bran layer intact, providing higher fiber and nutrient content compared to white rice. It is increasingly favored in India for its health benefits, such as improved digestion and reduced risk of chronic diseases, appealing to health-conscious consumers.

Along with this, rosematta rice is known as Kerala red rice, is a coarse, parboiled rice with a reddish-brown color. It is commonly used in South Indian cuisine, particularly in Kerala, and is appreciated for its distinct flavor and chewy texture.

Meanwhile, grain parboiled rice is partially precooked in its husk, preserving more nutrients than regular white rice. It is less sticky, making it ideal for dishes that require firmer rice grains. Parboiled rice is widely used in India for its enhanced nutritional value and longer shelf life.

Furthermore, sushi rice is a short-grain rice variety known for its sticky texture, which is essential for making sushi. Although traditionally not part of Indian cuisine, sushi rice is becoming more popular in urban areas due to the rising influence of Japanese cuisine in India’s dining scene.

Apart from this, other product variants include sticky rice, wild rice, and low-GI rice that cater to niche markets. These varieties are used in specific culinary applications or diets, often chosen for their unique textures, flavors, or health benefits, contributing to the diversity of the Indian rice market.

Breakup by Grain Size:

• Long Grain
• Medium Grain
• Short Grain
   

The report has provided a detailed breakup and analysis of the market based on the grain size. This includes long grain, medium grain, and short grain.

Long-grain rice is characterized by slender grains that stay separate and fluffy when cooked. Common varieties include Basmati and Jasmine, which are highly prized for their aroma and texture.

Besides this, medium-grain rice has a shorter, plumper grain than long-grain rice and tends to be more tender and moister when cooked. Varieties like Calrose are popular for their slightly sticky texture, making them ideal for dishes like paella and certain Indian preparations.

Moreover, short-grain rice is the shortest and roundest among the types, becoming soft and sticky when cooked. It is known for its chewy texture; this rice is often used in sushi, desserts, and dishes where a cohesive texture is desired, such as rice pudding and Asian rice cakes.

Breakup by Distribution Channel:

• Offline Stores
• Online Stores
   

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes offline and online stores.

Offline stores include supermarkets, hypermarkets, local grocery stores, and specialty shops where consumers can purchase rice directly. This traditional distribution channel remains dominant in India due to its accessibility, consumer preference for inspecting products in person, and the widespread presence of physical retail outlets in urban and rural areas.

Concurrently, online stores refer to e-commerce platforms and grocery delivery apps that sell rice directly to consumers via the Internet. This distribution channel is growing rapidly in India due to increasing internet penetration, convenience, competitive pricing, and a wider range of products. It caters especially to tech-savvy and urban consumers.

Breakup by Application:

• Food
• Feed
• Others
   

The report has provided a detailed breakup and analysis of the market based on the application. This includes food, feed, and others.

Rice is a staple food in daily diets across India. It is consumed in various forms, such as plain rice, biryani, and desserts, catering to diverse culinary traditions and preferences. Demand is driven by its affordability, versatility, and cultural significance.

In addition to this, rice finds extensive application as animal feed, particularly in poultry and livestock industries. It provides a cost-effective energy source and essential nutrients for animal growth. The demand for rice as feed is growing due to its availability and nutritional benefits for farm animals.

Apart from this, other product applications, such as the production of rice flour, rice bran oil, and various processed foods are propelling the market forward. Moreover, rice is used in brewing alcohol and making bioplastics. The versatility of rice allows it to cater to diverse industries beyond traditional food and feed markets.

Breakup by Region:

• South India
• North India
• West and Central India
• East India
   

The report has also provided a comprehensive analysis of all the major regional markets, which include South, North, West and Central, and East India.

South India is a major rice-producing region, benefiting from a favorable climate, abundant rainfall, and extensive irrigation systems. This region primarily grows Sona Masuri, Ponni, and various aromatic rice varieties.

In line with this, North India, particularly the Indo-Gangetic Plain, is known for cultivating high-quality basmati rice. The region's fertile soil and suitable climate conditions contribute to its significant share in domestic consumption and rice exports, emphasizing aromatic rice production.

Moreover, West and Central India produce diverse rice varieties, focusing on both aromatic and non-aromatic types. States like Maharashtra, Madhya Pradesh, and Gujarat have mixed farming practices due to varied agro-climatic zones. This region supports both local consumption and contributes to India's overall rice output, particularly in semi-arid areas.

Apart from this, East India is a key rice-growing region due to its high rainfall and fertile plains. The region predominantly grows regular rice varieties like Swarna and is crucial for India's domestic rice supply, supporting both subsistence farming and commercial agriculture.

Competitive Landscape:

• The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided.
• The competitive landscape is characterized by a mix of large, established players and numerous small-scale producers significant India rice market share with strong brand recognition, extensive distribution networks, and a focus on high-quality basmati rice. These players benefit from economies of scale, allowing them to maintain competitive pricing and invest in marketing and product innovation. Meanwhile, smaller producers and regional players cater to local markets and specialize in various non-basmati rice varieties, contributing to a highly fragmented market structure. The competition is further intensified by the presence of export-oriented companies that focus on meeting international demand for Indian rice. As the market evolves, companies are increasingly adopting advanced technologies, enhancing production efficiency, and expanding their product portfolios to maintain a competitive edge.

India Rice Market News:

• In June 2024, Acharya N.G. Ranga Agricultural University (ANGRAU) introduced new rice varieties suited for Andhra Pradesh, including MTU 1271, BPT 2846, BPT 2841, and NLR 3238. According to ANGRAU Principal Scientist T. Srinivas, MTU 1271 is a high-yielding, semi-dwarf variety developed as an alternative to BPT 5204, also known as ‘Samba Mahsuri.’ It produces 2.8 to 3 tonnes per acre and is suitable for various districts in Andhra Pradesh.

India Rice Market Report Scope:

Key Questions Answered in This Report:

• How has the India rice market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the India rice market?
• What is the impact of each driver, restraint, and opportunity on the India rice market?
• What is the breakup of the market based on the product type?
• Which is the most attractive product type in the India rice market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the India rice market?
• What is the breakup of the market based on the grain size?
• Which is the most attractive grain size in the India rice market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the India rice market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the India rice market?
• What is the competitive structure of the market?
• Who are the key players/companies in the India rice market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India rice market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India rice market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India rice industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.