India Rice Exports to 26 Priority Markets Saw Steady Rise

India Rice Exports to 26 Priority Markets Saw Steady Rise

General Studies Paper II: Cropping Patterns, Agricultural Market

Why in News?

Recently, India rice exports to 26 priority markets exceeded past averages, reaching 23,476 crore rupees in value and 5.6% in volume during November 2025-March 2026.

India’s Rice Export Performance: Key Data and Emerging Markets

Latest Export: Between November 2025 and March 2026, exports to 26 priority markets reached ₹23,476 crore and 4.79 million tonnes.
- Value was 1.1% above, while volume was 5.6% above the corresponding three-year average.
- The performance indicates an attempt to reduce excessive dependence on established markets by developing new geographical demand centres.
- Importantly, 11 of 26 markets recorded year-on-year increases in both value and volume.
- India’s rice exports are entering a market-diversification phase, with policymakers and exporters increasingly targeting demand beyond traditional destinations.
Emerging Markets: The United Arab Emirates recorded the strongest expansion, with export value rising 65% and volume 64% year-on-year, reaching ₹3,859.04 crore.
- Several European destinations strengthened significantly: Belgium’s value rose 53.8%, Germany’s 33.5%, France’s 31.3%, while the UK recorded 26.9% growth, expanding opportunities beyond conventional Asian and West Asian markets.
- India also recorded notable growth in South Africa, Kenya, Senegal and Mexico. Kenya’s export value increased 22.3%, while Senegal’s volume rose 29.9%, indicating scope for deeper penetration in emerging markets.
- India’s rice shipments to Iran—which represent 7% of its global exports—will continue despite disruptions.
  - The All India Rice Exporters Association confirmed that trade will flow through alternative payment channels.
  - These alternative routes will utilize banks and entities based in the UAE, Germany, China, and Turkey.
  - Indian varieties are being matched with specific cuisines according to grain length, aroma, texture, starch characteristics and absorption, improving their functional market positioning.

Economic Significance & Challenges to India’s Rice Exports

Significance:
- Foreign-Exchange Earner: India’s rice exports generated US$12.47 billion in 2024–25, according to APEDA, with export volume reaching 20.19 million tonnes.
  - In FY 2025–26, rice exports were valued at US$11.5 billion, highlighting its importance for agricultural trade.
  - Rice therefore contributes significantly to agricultural export earnings and strengthens India’s external trade position.
- Global Export Leadership: India has remained the world’s largest rice exporter since 2012, commanding around 30–35% of global rice exports in recent years. This gives India considerable influence over international rice availability and prices.
- Farmers and Rural Incomes: A strong export market creates an additional outlet for paddy producers, potentially improving farm-gate realisations and supporting rural purchasing power.
  - However, export benefits depend on procurement systems, market prices, input costs and farmers’ access to value chains.
- Rural Employment Multiplier: Rice exports support employment beyond cultivation, including milling, grading, packaging, warehousing, transportation, port handling and trading. Thus, export growth can generate a wider rural and agro-processing multiplier effect.
- Value Addition Opportunity: Moving from bulk commodity exports towards premium, branded and cuisine-specific rice can increase value captured within India.
  - Basmati, specialty varieties, processed rice products and differentiated packaging provide opportunities for higher-value agricultural exports.
Challenges:
- Export-Policy Uncertainty: India has used export restrictions to balance domestic availability and inflation. Restrictions have particularly affected non-basmati white and broken rice. Such changes can create uncertainty for international buyers.
- Food Security–Export Trade-off: India must balance export earnings with domestic food security. Export expansion cannot be pursued independently of domestic stocks, consumer prices, procurement requirements and the Public Distribution System.
- Logistics and Freight Vulnerability: Rice exports are exposed to freight costs, port congestion, transshipment delays and shipping disruptions.
  - The 2026 West Asia crisis demonstrated how route diversions and higher insurance costs can rapidly undermine export competitiveness.
- Geopolitical and Payment Risks: The recent disruption of Dubai–Iran trade and financial channels has created additional difficulties for
  - Indian rice exporters serving Iran, including higher freight, insurance and payment-related risks.
- Global Competition: India competes with Thailand, Vietnam, Pakistan, Cambodia and Myanmar, making price alone insufficient.
  - Sustained competitiveness requires quality consistency, efficient logistics, reliable policy, branding, market diversification and value addition.

Government Policies for India’s Rice Exports

Registration Mandate: The Agricultural and Processed Food Products Export Development Authority (APEDA) governs scheduled product exports.
- Exporters must obtain an e-RCMC to ensure compliance with global quality and packaging standards.
Importer Exporter Code: The Directorate General of Foreign Trade (DGFT) mandates an IEC (Importer Exporter Code) for all commercial cross-border transactions. This authorization legalizes overseas shipments.
RoDTEP Tax Rebates: The Remission of Duties and Taxes on Exported Products (RoDTEP) scheme refunds embedded central, state, and local levies. This financial support enhances price competitiveness abroad.
Policy Adjustments: The government recalibrates export curbs and duties based on domestic yields.
- Strategic lifting of restrictions revitalizes outbound shipments during high-output cycles.
- APEDA, with IRRI’s South Asia Regional Centre, has supported profiling of non-basmati varieties and development of rice-based value-added products.
Phytosanitary Certification: The Directorate of Plant Protection, Quarantine & Storage issues mandatory phytosanitary certificates. These documents verify pest-free standards for destination markets.
Minimum Support Price: The Minimum Support Price (MSP) framework stabilizes raw grain procurement costs. It guarantees steady domestic supply chains for milling and subsequent export.
Geographical Indication: Government-backed systems protect Basmati’s geographical identity, with its recognised GI area covering parts of seven states/UTs.
- This supports premium positioning and helps distinguish authentic Indian Basmati in global markets.
Trade Diplomacy: Bilateral trade pacts and reduced tariff barriers expand market access. Proactive diplomacy secures advantageous positioning across West Asia and Africa.
- The recent export of GI-tagged Joha rice from Assam to the UK and Italy illustrates this value-added diversification approach.
- The Bharat International Rice Conference (BIRC) provides a platform connecting exporters, international buyers, policymakers and industry stakeholders.
Market-Specific Facilitation: APEDA issues targeted advisories for markets such as Lebanon, Senegal, Philippines, Indonesia and China.
- In 2026, it also published China-specific procedures and a laboratory list for GMO analysis, strengthening market-access compliance.

Important Facts About Rice in India

Rice is India’s primary staple food for most Indians, with about 65% of the population consuming it daily.
- To meet this massive demand, approximately 25% of India’s total cropped area is dedicated to its cultivation.
Rice is predominantly a Kharif crop, but India also produces substantial Rabi and summer rice.
- It needs temperatures above 25°C, high humidity, and more than 100 cm of rainfall to grow well in acidic soils with good water retention.
- The 2020–21 to 2024–25 normal averages show 47.80 million hectares under rice, producing 135.52 million tonnes with an average yield of 2,835 kg/ha.
The official 2024–25 statistics estimate 150.18 million tonnes of rice production, underscoring its central role in Indian agriculture.
- Production is geographically diversified, led by Uttar Pradesh, Telangana, West Bengal, Punjab and Chhattisgarh.
- APEDA data places their respective shares at 13.82%, 11.62%, 10.67%, 9.56% and 6.90%, illustrating rice’s pan-Indian significance.
Basmati is a long-grain aromatic rice distinguished by its aroma, slender grains and characteristic elongation after cooking.
- Its GI production area covers Punjab, Haryana, Himachal Pradesh, Uttarakhand, Delhi, western Uttar Pradesh and parts of Jammu & Kashmir.
- During 2025–26, India exported 6.52 million tonnes of Basmati rice, valued at ₹50,138.28 crore (US$5.67 billion).
India produces numerous non-basmati varieties, including Sona Masuri, Ponni, HMT, IR-64, Kolam, Kalanamak, Jeera Sambha and Swarna.
High-yielding semi-dwarf rice varieties played a major role in India’s transition towards food self-sufficiency.
- ICAR identifies varieties such as Jaya as important milestones in the Green Revolution era.
- ICAR reports that Pusa Basmati 1509 can mature earlier and save about 33% water, alongside reducing irrigation requirements.

Frequently Asked Questions (FAQs):

1. What are the 26 priority markets for India’s rice exports?

The 26-market basket includes destinations across West Asia, Europe, Africa, North America and emerging markets; recent reports publicly identify major growth markets, but not all 26 names.

2. Why are India’s rice exports to 26 priority markets increasing?

Growth reflects market diversification, cuisine-specific promotion, substantial domestic availability, competitive varieties and stronger buyer engagement, alongside varying global demand conditions.

3. How much rice does India export to global markets?

India exported 20.19 million tonnes of rice worth US$12.47 billion in 2024–25, maintaining its position as the world’s largest rice exporter.

4. Which countries are the biggest buyers of Indian rice?

Major buyers include the UAE, Saudi Arabia, Iran, Iraq, Benin, Senegal, South Africa, USA and Canada, with demand varying by rice category.

5. What types of rice does India export?

India exports Basmati and non-Basmati rice, including white, parboiled, broken and specialty varieties serving diverse culinary and consumer requirements.

6. What is the difference between Basmati and non-Basmati rice exports?

Basmati is premium, aromatic, long-grained and higher-value; non-Basmati covers diverse varieties and generally contributes greater export volume across mass-market destinations.

Disclaimer: Information in this article is based on official announcements and public records. Regulations and implementation details may evolve over time.