# India Rice Market (2023-2030) --- ## Report Summary The India Rice Market worth USD 40.00 Billion in 2028 is projected to reach USD 55.00 Billion by 2033, growing at a CAGR of 6.65% during 2028-2033. --- ## India Rice Market Table of Contents Table of Contents - 1. India Rice Market Overview - 1.1. Market Overview - 1.2. India Rice Market Taxonomy - 2. India Rice Market Ecosystem - 3. India Rice Market Size (in USD Billion), 2018-2023 - 4. India Rice Market Segmentation, 2023 - 4.1. India Rice Market Segmentation by Type of Rice, By Value (in USD Bn), 2023 - 4.2. India Rice Market Segmentation by Distribution Channel, By Value (in USD Bn), 2023 - 4.3. India Rice Market Segmentation by Grain Length, By Value (in USD Bn), 2023 - 4.4. India Rice Market Segmentation by Use Cases, By Value (in USD Bn), 2023 - 4.5. India Rice Market Segmentation by Region, By Value (in USD Bn), 2023 - 5. Competitor Analysis - 5.1. Company Profiles - 6. India Rice Industry Analysis - 6.1. India Rice Market: Growth Drivers - 6.2. India Rice Market: Challenges - 6.3. India Rice Market: Recent Developments - 6.4. SWOT Analysis - 6.5. Porter Five Forces Analysis - 7. India Rice Market: Regional Analysis - 8. India Rice Market Future Market Size, By Value (in USD Bn), 2023-2030 - 9. India Rice Market: Trends and Opportunities - 9.1. Increasing Demand for Basmati Rice - 9.2. Enhancing Production Capacities - 10. Macro-Economic Indicators - 10.1. India GDP and Inflation Rate, 2021 - 10.2. Population Growth - 11. Research Methodology - 11.1. Definition - 11.2. India Rice Market Sizing Approach - 11.3. Research Limitations --- ## India Rice Market Overview India Rice Market Highlights The India Rice Market was valued at USD 60.81 Bn in 2018 and grew at a CAGR of 8.9% during 2018–2023. The market is further expected to reach USD 159.02 Bn by 2030, expanding at a projected CAGR of 7.9% over 2023–2030. Growth in the market is being driven by the steady rise in rice production and consumption across the country, evolving consumer lifestyles, and increasing demand from allied industries where rice serves as a key ingredient, including the alcoholic beverage and pet food sectors. *The India Rice Market, valued at USD 60.81 Bn in 2018, grew with CAGR of 8.9% from 2018-2023.* --- ## Taxonomy | ID | Parent ID | Label | | --- | --- | --- | | 1 | | India Rice Market | | 2 | 1 | Grain Length | | 3 | 1 | End Use | | 4 | 1 | Distribution Channel | | 5 | 1 | Type of Rice | | 6 | 2 | Long Grain Length | | 7 | 2 | Medium Grain Length | | 8 | 2 | Short Grain Length | | 9 | 3 | Food Consumption | | 10 | 3 | Alcohol and Alcoholic Beverage Production | | 11 | 3 | Pet Food | | 12 | 4 | Online | | 13 | 4 | Offline | | 14 | 5 | Basmati Rice | | 15 | 5 | Non-Basmati Rice | --- ## India Rice Market Ecosystem ### Market Ecosystem **Ecosystem of India Rice Market** --- ## India Rice Market Size, By Value (in USD Bn), 2018-2023 The India Rice Market was valued at USD 93.10 Bn in 2023 and grew at a CAGR of 8.9% during 2018–2023. Market growth has been driven by rising population, increasing urbanization, and expanding demand from industries such as alcoholic beverages and pet food, where rice is used as a key ingredient, resulting in higher overall consumption. Strong rice production supported by the timely onset of Southwestern and Northeastern monsoons has also played a critical role in market expansion. The market is led by major players such as KRBL Limited, LT Foods Ltd, and Kohinoor Foods Limited, which hold strong positions in both domestic sales and export volumes. At the same time, the industry is influenced by a highly dynamic regulatory environment, along with challenges such as poor infrastructure and land fragmentation. --- ## India Rice Market Segmentation, 2023 ### India Rice Market Segmentation by Type of Rice (in USD Bn), 2023 In 2023, the non-basmati rice segment dominated the India Rice Market, accounting for around 90% of total market share. This segment includes a broad range of rice varieties such as Jasmine rice, Arborio rice, Bombay rice, Brown rice, and several others, each offering distinct textures, flavors, shapes, and culinary applications. Non-basmati rice is a staple across Indian households and is widely used in everyday cooking for numerous dishes. Its strong market dominance is primarily driven by the availability of multiple varieties and its affordability, with most types typically priced between INR 50 and INR 70 per kg, compared to basmati rice, which generally ranges from INR 100 to INR 150 per kg or more. These factors have made non-basmati rice the preferred choice for regular household consumption across the country. ### India Rice Market Regional Production Scenario (in Mn Tons), 2021-2022 In terms of total production, Eastern India leads the rice market with a share of 39.6%, followed by North India at 32.9%. Together, these two regions contribute more than 70% of India’s total rice production, supported by abundant water availability from multiple rivers and tributaries, favorable climatic conditions, and fertile soil suitable for rice cultivation. Northern India is the major producer of basmati rice, while Eastern India dominates non-basmati rice production. Key basmati-producing regions include Jammu & Kashmir, Himachal Pradesh, Punjab, Haryana, Delhi, Uttarakhand, and western Uttar Pradesh. --- ## India Rice Industry Analysis ### India Rice Market Growth Drivers **Rise in Rice Consumption** The Indian rice market experiences significant growth driven by factors such as population expansion, urbanization, and evolving lifestyles, resulting in a rise in rice consumption. From 98.7 million tons in 2017 to over 114 million tons in 2023, rice consumption demonstrates a Compound Annual Growth Rate (CAGR) of approximately 2.4%. Rice, deeply ingrained in Indian culinary heritage, remains a staple food nationwide. Increased disposable incomes empower consumers to access a variety of rice types and value-added offerings. Furthermore, rice's health benefits and gluten-free properties contribute to its widespread popularity. Government initiatives in food security further bolster consumption. This trend, rooted in cultural traditions, presents opportunities for heightened production and exports, consolidating India's position as a significant contender in the global rice market. **Booming Indian Alcoholic Beverage Industry** The rapid expansion of the Indian alcoholic beverage industry is positively influencing the growth of the India Rice Market, as rice remains a key ingredient in products such as rice beer and rice wine. Rising consumption of alcoholic beverages, along with increasing consumer preference for premium and specialty drinks, is creating stronger demand for high-quality rice varieties used in these products. The emergence of craft breweries and artisanal distilleries is further boosting the need for locally sourced rice, while well-established distribution channels and supportive government policies continue to strengthen this demand. As a result, the growth of the alcoholic beverage sector is not only expanding the market for rice but also encouraging greater cultivation and wider utilization of rice across diverse beverage manufacturing processes, highlighting the strong interdependence between the two industries. **Rise in Global Demands for Rice** The surge in global demand for rice exports has become a major growth driver for the Indian rice industry, supported by the country’s rising export volumes, which peaked at 21.21 million metric tons in 2022 despite periodic fluctuations. This growth is driven by India’s strong position as one of the world’s leading rice producers and exporters, known for its diverse rice varieties and competitive pricing, enabling it to meet increasing international demand effectively. Geopolitical developments and trade agreements have further strengthened export opportunities, while climate-related disruptions in other rice-producing regions and the COVID-19 pandemic increased global dependence on India for rice supplies. In addition, continuous improvements in export infrastructure and quality control have enhanced India’s competitiveness in international markets, attracting a wider base of buyers and reinforcing its role as a key supplier in the global rice trade. ### India Rice Market Challenges **Policy Uncertainties** Policy uncertainty emerges as a significant challenge in the Indian rice market, primarily stemming from government interventions in rice exports. In 2023, various measures, such as the prohibition of non-Basmati white rice exports, imposition of a 20% duty on parboiled rice exports, and establishment of a minimum export price of ?950/million tons for Basmati rice, were implemented. These interventions necessitate exporters to continually adjust their strategies in response to evolving regulations. The ban on non-Basmati white rice exports directly influences the volume of rice exported from India, while exporters of Basmati rice encounter obstacles due to minimum export price regulations. These policy alterations introduce uncertainties regarding export volumes and revenue for rice exporters. **Land Fragmentation and Poor Infrastructure** The Indian rice industry confronts the challenge of striking a delicate balance between land fragmentation and farm consolidation. Presently, India boasts over 146 million operational landholdings, each averaging less than 1.15 hectares. This fragmentation constrains economies of scale and impedes the adoption of modern agricultural practices. Inadequate mechanization increases challenges in Indian agriculture. Presently, only about 40% of India’s agricultural land is under mechanized cultivation, limiting productivity enhancements and escalating production costs. Within the rice value chain, insufficient storage facilities, transportation networks, and post-harvest management systems present formidable obstacles. India experiences an annual loss of approximately 10-15% of its rice production due to inadequate storage and handling facilities. ### India Rice Market Recent Developments **February 2024** The Indian government announced the launch of the sale of 'Bharat' Rice at an affordable MRP of Rs. 29/kg in 5kg and 10kg packs. This rice has been made available at physical and mobile outlets of Kendriya Bhandar, NAFED, and NCCF. **July 2023** The Indian government announced the amendment to the export policy of non-basmati white rice prohibiting the export to ensure adequate domestic availability at reasonable prices. **September 2022** In a bid to boost domestic availability amid rising demand from the poultry industry and for ethanol production under the Ethanol Blended Petrol (EBP) program, the Government of India has amended the export policy to ban the export of broken rice. **July 2022** The United Arab Emirates has unveiled plans to invest over USD 2.0 billion in India to establish food parks. These initiatives aim to enhance food security in South Asia and the Middle East by leveraging advanced climate technology to maximize yields of priority crops such as rice, onions, and potatoes while fostering collaboration among farmers, processors, and retailers. **June 2022** Vida Carbon Corp. has entered into an Emission Reduction Purchase Agreement with Core CarbonX Solutions Pvt Ltd, a reputable climate and sustainability consulting firm in India. The agreement aims to enhance cultivation and water management practices across 100,000 hectares in Telangana, thereby boosting rice production in four phases. **In January 2022** A new rice variety known as "TRY 5" was made available in India, by the Tamil Nadu Agricultural University (TNAU). It's an early-duration cultivar intended for soil with salt issues. --- ## India Rice Market Company Profiles | Year | Company | Description | | --- | --- | --- | | 1978 | LT Foods Ltd | The company has its operations globally, has around 2,228 employees as of 2022, and has 6 different brands and sub-brands specializing in different varieties of rice. LT Foods specializes in basmati rice, which is known for its long grains, aromatic flavor, and premium quality. Their flagship brands, “Daawat” and “Royal,” enjoy market-leading positions in India and the United States, respectively. Beyond raw rice, LT Foods offers an array of value-added rice products. These include brown rice, white rice, steamed rice, parboiled rice, organic rice, quick-cooking rice, and flavored rice in the ready-to-cook segment. | | 1889 | KRBL Limited | The company has its operations globally with around 2,514 employees. The company boasts world’s largest paddy milling capacity of 195 Metric Tons per hour. As India’s first integrated rice company, KRBL operates primarily in the manufacturing and marketing of rice products. KRBL holds approximately 25% of the branded Basmati exports from India and around 30% of the branded Basmati sales in the domestic market | | 1976 | Kohinoor Foods Limited | Kohinoor Foods specializes in basmati rice, offering premium quality grains. Beyond rice, Kohinoor Foods Limited’s product basket includes Pure Ghee, Paneer (Indian Cottage Cheese), Ready Mixes, Namkeens and sweets. | | 1972 | Amirchand Jagdish Kumar (Exports) Ltd. | Amirchand Jagdish Kumar (Exports) Ltd. (ACJKEL) is a leading player in the rice industry, with over 40 years of experience. Founded by Mr. J.K. Suri and now led by his son, Mr. Rahul Suri, the company holds ISO 22000:2018 certification and is recognized as a two-star trading house by the Government of India. ACJKEL is known for its popular Aeroplane brand and its extensive international presence in over 75 countries, including major rice-importing nations like Iraq and Saudi Arabia. Domestically, Aeroplane Basmati Rice is a top brand available across India's major cities through a wide distributor network. With rice mills in Punjab and Haryana, ACJKEL ensures efficient production and export of both basmati and non-basmati rice. | | 1901 | Amar Singh Chawal Wala | Headquartered in Amritsar, India, Amar Singh Chawal Wala - The House of Lal Qilla the company operates under the brand name Lal Qilla. Amar Singh Chawal Wala holds several certifications, including ISO 22000, BRC, SA8000:2014, APEDA, and HACCP, underscoring its commitment to quality and safety standards. With over a century of experience, the company is a leading rice producer in India, specializing in the production of the purest and highest-quality Basmati Rice under various brands. Its extensive reach spans across 70+ countries, serving a diverse global market. Amar Singh Chawal Wala boasts a production capacity of over 560 tons per day, ensuring a steady supply of premium rice products to meet consumer demand worldwide. | --- ## India Rice Market Future Market Size ### India Rice Market Future Market Size (in USD Bn), 2023-2030 India’s Rice Market is expected to reach USD 159.02 Bn by 2030, growing at a projected CAGR of 7.9% during 2023–2030. Market growth is being supported by rising demand for specialty rice varieties such as basmati rice, along with improvements in production and milling capabilities across the country. Additional growth drivers include India’s expanding population, increasing use of rice in ethanol production, and the country’s strong export potential. Strengthening economic conditions are also contributing to higher domestic rice consumption, while the growth of the alcoholic beverage industry is creating additional demand for rice as a key ingredient. At the same time, rising import demand from global markets is reinforcing India’s position as a major rice exporter and putting greater emphasis on scaling production to meet both domestic and international requirements. --- ## India Rice Market Macro-Economic Indicators ### India GDP (in USD Tn) and Inflation Rate (in%), 2016-2021 The steady growth in India's GDP from 2017 to 2023, along with fluctuating inflation rates, has significantly influenced the rice market. As GDP increased, so did consumers' purchasing power, potentially driving up demand for rice, a staple food in India. Fluctuations in inflation rates, particularly the peak in 2020, may have impacted consumer spending patterns, possibly leading to shifts towards more affordable rice varieties during inflationary periods. Overall, the resilient economy likely supported steady demand for rice, prompting market players to adapt pricing and product strategies to cater to varying consumer preferences and economic conditions within India's rice market. ### India Population Growth (in Millions), 2017-2024 The data indicates a steady increase in population figures, with each subsequent year showing a slightly higher growth rate. In 2017, the population stood at 1,354,195,680 and experienced a growth rate of 1.16%. Over the years, this growth rate gradually declined but remained positive, indicating sustained population expansion. By 2024, the population had reached 1,441,719,852 with a growth rate of 0.92%. Despite the decreasing growth rate trend, the absolute population numbers continued to rise, suggesting a persistent upward trajectory in overall population size. --- ## Frequently Asked Questions Find quick answers to common questions about the India Rice Market **Q: How big is India Rice Market?** A: The India Rice market, valued at USD 93.10 Bn in 2023, rising with a Compound Annual Growth Rate (CAGR) of 8.9% from 2018 to 2023. **Q: Who are the major players in India Rice Market?** A: The India Market is fragmented with presence of certain large established players in the market. Some of well-established players in this market are KRBL Limited, LT Foods Ltd, Amirchand Jagdish Kumar (Exports) Ltd., Amar Singh Chawal Wala, Kohinoor Foods Limited, and D.D. International Inc. **Q: What are the factors driving India Rice Market?** A: The India Rice Market is driven by increasing demand for specialty varieties like basmati, improved production and milling capabilities, a growing population, rice-based ethanol production, and strong export capabilities. **Q: What is the future of India Rice Market?** A: India Rice Market is expected to reach USD 159.02 Bn by 2030 with a projected CAGR of 7.9% between 2023-2030.