RICE EXPORT FROM INDIA

India is the world's largest rice exporting country. Other major rice exporters include Thailand, Vietnam, Pakistan, the United States, China, and Burma. These 7 countries account for more than 85 percent of the total volume of annual global rice exports.

India accounts for approximately 40% of global rice shipments, exporting to more than 150 countries. Exports reached 21.5 million tons in 2021. That’s more than the total shipment from the next four biggest exporters of the grain — Thailand, Vietnam, Pakistan and the United States. For India, July and August are the “most crucial” months for rainfall, as they determine how much rice is sown.

Exports from India of Non Basmati Rice

Exports From India

In addition to whole-grain milled rice, India exports enormous quantities of broken kernels to China, West Africa and Vietnam. Broken rice, a by-product of the milling process, has a variety of uses. India produces about 50-60 lakh metric tonnes (5-6 million tonnes) of broken rice annually.

Source: Commerce Ministry and Consumer Affairs, Food and Public Distribution Ministry/Money Control

India’s rice export ban

India, the world’s largest rice exporter, has banned shipments of broken rice and imposed 20% duty on export of non-basmati rice as domestic prices increased on account of higher shipment abroad. The measures do not affect export of basmati or parboiled rice.

India accounted for 40% of the total rice exports in the world in 2021 larger than the next four exporters (Thailand, Vietnam, Pakistan and United States) combined.

As for broken rice, the United States Department of Agriculture (USDA) states that India accounted for more than half of the commodity’s global exports in the first half of 2022. As per government figures, between April and August this year, broken rice’s share in the overall rice export mix (of India) was 22.78% compared to 18.89% in FY 2021.

In descending order, China, Senegal, Vietnam, Djibouti and Indonesia are the biggest importers of India’s broken rice.

On the flip side, some countries could be beneficiaries on account of rice ban from India - Thailand and Vietnam will most likely to profit from India’s ban. That’s because they’re the world’s second- and third-largest exporters of rice, making them the most likely alternatives for countries looking to fill the gap.

With the increase in exports, and India’s ban placing an upward pressure on rice prices, the overall value of rice exports will increase and these two countries will benefit from it.