India Rice Market Report

India Rice Market Size and Share:

The India rice market size was valued at USD 10.12 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 12.21 Billion by 2033, exhibiting a CAGR of 2.1% from 2025-2033. The India rice market share is growing due to the increasing population, rising domestic consumption, government support through Minimum Support Price (MSP), advancement in farming technology, increasing exports, climate-friendly rice varieties and improved irrigation systems.

The India rice market growth is attributed to the increasing population and rising export demand. The Ministry of Statistics & Programme Implementation has estimated that the country's population will be 152.2 Crores by 2036, thereby creating a continuously high demand for rice as a staple food. Rice is a dietary essential for a significant proportion of the population, especially in rural areas where it forms the primary source of nutrition. The consumption of processed rice products such as rice flour, ready-to-eat meals, and snacks has increased due to increasing incomes, urbanization, and changing lifestyles. Government policies are also a very important support system for the rice market. MSP ensures that a minimum price is assured to the farmer for his paddy crop, hence providing economic stability and encouraging continuous production. Additionally, the irrigation development and modernization of agricultural practices through the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) are some activities that have improved rice cultivation efficiency.

Crop management and pest control technological innovations are also increasing yields, hence making it profitable and sustainable to farm more rice. Another major driver is the export market. India is the world's largest rice exporter, mainly Basmati, which holds a very high demand in international markets due to its premium quality and pleasant aroma. Strong international market demand, primarily from the Middle East, Africa, and Southeast Asia, has spurred production. Additionally, the adoption of climate-resilient varieties designed to withstand adverse weather conditions and even hail and floods ensures steady yield in unpredictable climates. The expansion of e-commerce platforms that allow exports of rice is also adding to market growth. The growing Indian middle-class population with greater health consciousness and a penchant for premium varieties like organic rice is creating new market opportunities. Investment in storage and processing infrastructure has improved the supply chain, reduced post-harvest losses and ensured better availability in the domestic markets.

India Rice Market Trends:

Rise in rice exports

India has become the world's top rice-exporting nation. The Ministry of Commerce & Industry states that rice exports increased by 85.79%, reaching USD 1.05 Billion in October 2024. The rice exports, basmati, and non-basmati varieties have become an integral part of India's agricultural economy. These are some of the factors that lead to this export growth, among which are government policies, including the removal of export floor prices for non-basmati white rice. This makes Indian rice competitive in the international market. The increase in rice production in India, along with improvements in infrastructure, like storage facilities and transport systems, supports this growth. In addition, international demand for premium and inexpensive varieties of rice has been on an upward trajectory across the Middle East, Southeast Asia, and Africa. With emerging new trade deals and an increasing focus on quality, the prospects for growth in India's exports of rice continue to remain excellent.

Advancements in rice cultivation technology

Technological innovation is transforming the India rice market trend, boosting productivity and sustainability in rice farming. One of the trends that is gaining importance is the high-yielding, climate-resilient rice varieties that are helping farmers overcome the challenges of changing weather patterns. Hybrid rice varieties have also improved the overall quality and productivity of rice. There is increased usage of precision agriculture in India, which comprises drones, satellite imagery, and automated machinery. The technology guarantees that the correct amount of water and fertilizers will be used, which helps reduce the negative effects of pests. There are also expectations that the usage of AI and machine learning by farmers will allow them to predict the right time to plant crops and thus optimize crop rotations. These advances improve crop yields and enhance the profitability and sustainability of rice farming in India. As technology continues to mold the sector, the farmers are well placed to respond to rising India rice demand, thus improving the country's status as a rice leader.

Sustainability and climate-resilient rice varieties

India's rice farming is exposed to unpredictable weather, rising temperatures, and altered rain patterns, which is further expanding India rice market share. Development and adoption of climate-resilient rice varieties are also increasing. By 2024, a total of 668 rice varieties had been developed in India, out of which 199 were extreme climate-resilient varieties capable of withstanding extreme weather conditions. According to the Ministry of Agriculture & Farmers Welfare, these include 103 drought- and water-stress-tolerant varieties, 50 flood/submergence-tolerant, 34 salinity/alkalinity-tolerant varieties, and 6 heat- and 6 cold-tolerant varieties. These varieties are meant to be tolerant to temperature fluctuations, droughts, and floods, which are increasingly occurring in several rice-producing regions of India. Research institutes and the government work together to advance high-yielding varieties that will require less water and be resistant to diseases and pests. Through these innovations, farmers can at least maintain the yields of crops even when climatic changes are unpredictable. The growing interest in sustainable farming, such as that for promoting AWD techniques of reducing water and minimizing methane production from rice cultivation, will form the foundation for the adaptation to environmental challenges in the Indian rice market. Over the long term, sustainability and resilience to climate will dominate growth and profit drivers, creating a positive India rice market outlook.

India Rice Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India rice market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on product type, type, grain size, distribution channel, and application.

Analysis by Product Type:

• Regular
• Aromatic

Regular rice is a commonly consumed type of rice, and people prefer it due to its neutral flavor and versatility. It is used in most cooking processes, from simple dishes to elaborate meals, and is highly cost-effective, which makes it a staple in every household across the globe. Varieties of this type include Sona Masoori and IR64, known for their mild flavor and the ability to be paired with any curries, stews, and dals. On the other hand, aromatic rice consists of premium varieties such as Basmati, Jasmine, and Texmati that are quite aromatic and highly flavored. Generally, aromatic rice is costlier on account of unique sensory properties however, it is used exclusively in high cuisine applications, where the culinary dishes turn out to be gourmet and for festive occasions too. Basmati rice epitomizes all traditional biryani and pilaf preparations in contrast to a Southeast Asian affinity with Jasmine. The aromatic rice segment has been growing steadily due to the increasing demand for premium rice varieties, particularly in export markets. According to the Paddy Outlook – October 2024, India exported 4.70 Lakh MT of Basmati rice, further underscoring the rising demand for this aromatic rice variety, especially in international markets.

Analysis by Type:

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

Red rice is less processed, rich in antioxidants, and is considered a healthier alternative as it has a higher nutritional value than white rice. It is popular in Southeast Asia and India and has gained popularity in health-conscious markets. Arborio rice is a short-grain variety that is used for risottos due to the presence of high starch content, giving the dish creamy texture. Black rice, colored deep purple black, is nutrient-rich in iron and anthocyanins. It is therefore commonly sold in health and specialty food markets. Fragrant grain rice is an aromatic variety and widely used in many Asian cuisines; it imparts flavor to foods due to the distinctive fragrance that it has. Brown rice, a whole grain, is another variant, richer in fiber and essential nutrients for those looking at healthier alternatives. Organic Positive claims that 100 grams of brown rice includes about 3.5 grams of fiber, which is rather healthy. Rosematta Rice is a dark red rice commonly used in South India, especially in traditional preparations. Grain parboiled rice is partially precooked and still has more vitamins than regular white rice-a favorite of health-conscious consumers. Sushi Rice, a short-grain rice, is used as it is sticky enough to be able to prepare sushi and is of a large variety in Japanese cuisine.

Analysis by Grain Size:

• Long Grain
• Medium Grain
• Short Grain

Long grain rice is distinguished by long, slender grains, which remain fluffy when cooked, and is very commonly used in pilafs, biryanis, and fried rice where separated, non-sticky grains are desired. Popular long-grain varieties such as Basmati and Jasmine are particularly prized for their aromatic qualities and texture. Medium grain Rice, slightly shorter and plumper, is moist and tender with cooking, making it suitable for risotto, paella, or the various Asian recipes requiring a slightly sticky creaminess. These updates of grain stock estimates from the government are reflected and have helped maintain sound supplies for all culinary purposes. Short grain Rice, plump, and round, has a high starch content. Upon cooking, the grain develops a sticky consistency that makes it great for sushi, rice pudding, and any preparation requiring traditional sticky rice. Each grain size meets specific cooking needs, which are shaped by regional and cultural preferences, adding to the overall diversity and demand in the rice market.

Analysis by Distribution Channel:

• Offline Stores
• Online Stores

Offline, including supermarkets, hypermarkets, and local grocery stores, represent the primary purchase points for most consumers. The benefits of buying from these sources include being able to touch the product and compare different brands. Additionally, they cater to larger families or businesses with bulk purchasing options, offering a personalized shopping experience that many consumers prefer, especially in regions where e-commerce infrastructure is still developing. However, online stores have witnessed rapid growth, fueled by the convenience of shopping from home, door-to-door delivery, and access to a broader range of rice varieties. Online marketplaces such as Amazon, Flipkart, and niche grocery stores allow consumers to browse the more extensive product information, reviews, and types of rice that cannot be easily found in a brick-and-mortar store. It is also one of the changes noticed among urban buyers who prefer easy access and saving time. According to the India Brand Equity Foundation, the Indian e-commerce sector will reach US$ 325 Billion by 2030, making it a high-growth space for online retail of rice. The expansion of online grocery platforms and the increasing trend of digital shopping are expected to further accelerate the e-commerce segment, making it a critical component of the rice market’s distribution strategy.

Analysis by Application:

• Food
• Feed
• Others

Food remains the significant segment in the rice market, encompassing a diverse range of applications, from everyday meals to gourmet dishes. As a staple food in many countries, rice is prepared in numerous forms, including boiled, and fried, and in iconic dishes like biryani, pilaf, sushi, and rice pudding. Its nutritional value, versatility, and role as a primary carbohydrate source drive its demand across traditional and modern cuisines. According to India Brand Equity Foundation, rice production in India is expected to touch a new high of 119.93 Million Tonnes (MT) during the kharif season in 2024–25. This is indeed the scale of rice cultivation supporting these diverse applications. Consumer preference is also turning toward healthier consumption habits, thus increasing the popularity of rice types like brown rice, red rice, and parboiled rice, valued for their higher fiber and nutrient content. Feed rice, on the other hand, contains by-products such as rice bran, which are widely used in livestock and poultry farming. Rice bran, highly packed with energy, protein, and essential fatty acids, is a vital component in animal nutrition that contributes to the growing demand for high-quality feed requirements in regions with strong agricultural industries. This large-scale production will ensure the availability of rice for food and feed purposes and also encourage sustainable farming practices through the effective utilization of rice byproducts.

Regional Analysis:

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

South India is one of the biggest consumers and producers of rice, with it being a prominent part of the diet. Leaders that are commonly marked include Tamil Nadu, Andhra Pradesh, and Karnataka. The staple in the region is rice, which occurs in boiled rice, idli, and dosa. North India is known to use aromatic varieties, such as Basmati, primarily, especially in Punjab, Haryana, and Uttar Pradesh. The states of West and Central India, which include Maharashtra, Madhya Pradesh, and Gujarat, are the key rice producers, with a mix of white and aromatic rice varieties being cultivated to suit local cuisines and fast-growing urbanization. East India, which includes West Bengal, Odisha, and Assam, favors certain varieties over others, for example, Gobindobhog and Kala Bhog. As stated by Bidhan Chandra Krishi Viswavidyalaya, West Bengal alone generates around 2.5–3.0 Lakh Tonnes of the premium scented rice every year in the kharif season across 90,000–100,000 hectares. This again reveals the importance of rice in regional food culture and tradition. In short, collective preferences and production capabilities in various regions will determine the more diversified, constantly changing rice market in India.

Competitive Landscape:

Market leaders in the Indian rice market are now highly focused on innovation, sustainability, and an expansion of geographies. Of all these trends, some of the trends that are witnessing unprecedented trends are the health-conscious rice types introduced, like brown rice, red rice, and organic. Companies are also researching and developing climate-resilient and high-yielding rice varieties, which would alleviate the impacts of climate change on the sector. The Ministry of Agriculture & Farmers Welfare reports that technology demonstrations and capacity-building programs focused on climate-resilient technologies were implemented in 448 climate-resilient villages across 151 vulnerable districts under the Technology Demonstration Component of NICRA. These initiatives have enhanced the industry's capacity to adapt to climate challenges. Additionally, strategic mergers and collaborations between rice producers and distributors are improving market reach. E-commerce platforms are gaining importance, with companies expanding online sales to reach urban consumers. Furthermore, several players are focusing on sustainable practices, including eco-friendly packaging and reduced carbon footprints, to meet consumer preferences for environmentally responsible products.

The report provides a comprehensive analysis of the competitive landscape in the India rice market with detailed profiles of all major companies.

Latest News and Developments:

• On December 2024, LT Foods Ltd. launched DAAWAT® Jasmine Thai Rice in the Indian market.. This non-GMO-certified rice from Thailand represents a fragrant aroma and soft texture suitable for preparations across Thailand and oriental cuisines. It is available on top e-commerce platforms with good interest being generated among the Indian masses toward global cuisines.
• On November 2024, Diageo India launched a regenerative agriculture program focused on sustainable rice farming in Telangana, with support from the Centre for Sustainable Agriculture. It supports 220 farmers across 500 hectares with activities that reduce carbon and water footprints. The AWD practice would further enhance the sustainability of rice production in support of company supply chain objectives.
• On November 2024, KRBL has introduced a 'Swaad Samriddhi Ka' campaign for India Gate Basmati Rice to reinforce its market presence in Maharashtra. The campaign focuses on various key regions like Kolhapur, Pune, and Sangli. It celebrates family values and prosperity. It carries a touching story and will be promoted extensively on digital platforms, especially on YouTube.
• On June 2024, Mitti Labs launched five rice projects across India, focusing on reducing methane emissions, improving water security, and supporting farmer resilience. The projects will cover 30,000 hectares and reduce 120,000 Metric Tons of CO2e annually. The initiative involves 40,000 farmers and is partnering with foundations, with the aim of further expansion by 2025.
• On May 2024, Savannah Seeds, in partnership with ADAMA India, has introduced the FullPage Rice Cropping Solution, which aims at weed management to improve rice cultivation. It has been tried in the field for three consecutive years in Chhattisgarh, resulting in a yield increase of 25-40% and a 25-30% reduction in greenhouse gas emissions. FullPage maximizes direct seeding of Rice, saves costs, and is sustainable.

India Rice Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s 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 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the India rice market.
• 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.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.