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Informist, Thursday, Oct. 30, 2025

NEW DELHI - The Indian rice industry is navigating a period of turbulence, even as it sets its sights on raising exports from the current 20-23 million tonnes to 30 million tonnes, industry leaders said during a panel discussion at the Bharat International Rice Conference on Thursday. Policy consistency, higher productivity and a shift toward niche, value-added varieties will be crucial for achieving this goal, they said.

The sector had shown "remarkable resilience" through a series of global shocks — from the pandemic to geopolitical conflicts — but now faces the challenge of a global rice glut, Nitin Gupta, deputy country head at Olam Agri, said. "The Indian rice industry has been going through very turbulent times," he said. "Despite supply chain disruptions and climate challenges, our exports have grown from 10 million tonnes in 2015-16 to 20-23 million tonnes today. He attributed this to improvement in port infrastructure and the ability to find newer, better markets. He said rice now contributes nearly 20% of India's total agricultural export basket. However, Gupta warned that the world was now "sitting on huge surplus stocks," with India, Thailand, Pakistan, Myanmar, and Vietnam all holding large inventories.

"The challenge today is that despite volumes increasing, the value of exports is not rising," he said. "India has earned a reputation as the cheapest source of rice. It's time we think differently." He added that India has clear potential to lift exports to 30 million tonnes if it works on market diversification and niche varieties.

Several panelists, including agriculture economist Ashok Gulati, flagged India's history of export restrictions as a factor that has undermined trust and distorted markets. He urged India to focus on stability and productivity to enhance competitiveness. "Trust is very critical today," he said. "India should stand up and say that in certain commodities, we will be a reliable supplier," he said.

In September 2022, India imposed curbs on shipments of non-basmati rice, levying a 20% export duty on various grades, with only basmati and parboiled rice exempted. In August 2023, India introduced a temporary minimum export price of $1,200 per tonne for basmati rice exports. While these curbs were lifted in September 2024, they are said to have had significant ripple effects. Industry complains that international buyers, at the time, scrambled for alternative sources, which has now led to lesser market access for India.

Gulati cautioned that frequent export curbs and policy uncertainty unnerved global buyers, calling for a more consistent export framework that builds confidence among importers.

Gulati said India must raise its yield of rice from 3 tonnes per hectare to 5 tonnes per hectare to bring down costs and become more competitive internationally. "We haven't adopted hybrid rice to the extent that China has," he said, noting that China's productivity is nearly twice that of India's. "As we improve productivity, costs will come down and we can supply the world cheaper and larger quantities. That's the magic formula."

To increase exports, Khalid Khan, vice president of procurement at ITC Ltd., said the future of Indian rice exports is in branding, quality, and value addition rather than sheer volume. "We have seen how a basic staple like wheat flour was transformed into a INR 60 billion brand," he said. "The same can be done with rice through consistency, quality and trust."

He added that India should move from basic fair average quality varieties to niche short-grain and aromatic types, which could command premium prices globally. "Each state has unique rice varieties, and these can drive the next phase of export growth," he said.

Khalid also underlined India's ability to produce organic, sustainable, and low-carbon rice, aligning with global trends toward eco-friendly consumption. "Sustainable rice production is the need of the hour. It reduces water use and emissions while opening up new markets for low-carbon rice," he said.   End

Reported by Pallavi Singhal and Afra Abubacker

Edited by Ashish Shirke

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