India's Rice Exports Surge Nearly 86% In October

India's rice exports surpassed the USD 1 billion mark in October 2024, reflecting a significant shipment surge following government efforts to ease export restrictions. According to the Ministry of Commerce and Industry, rice exports in October were valued at USD 1,050.93 million, marking an 85.79 per cent increase compared to USD 565.65 million in October 2023. This rise also represents a notable jump from September 2024, when exports totalled USD 694.35 million.

The sharp increase follows several key policy changes by the Indian government to facilitate rice exports. On September 28, the government lifted the ban on Non-Basmati White Rice exports, though a minimum export price (MEP) of USD 490 per tonne was initially imposed. However, this price cap was removed on October 23. Additionally, on September 27, the government abolished the 20 per cent export duty on Non-Basmati White rice and reduced export duties on other rice categories from 20 per cent to 10 per cent. By October 22, the duty on these rice categories was eliminated.

As a result of the October surge, India’s overall rice export value during the first seven months of the 2024-25 financial year increased by 5.27 per cent, reaching USD 6,171.35 million, compared to USD 5,862.23 million during the same period in the previous year. Notably, by the end of September, rice exports were down by 3.33 per cent, totalling USD 5,120.43 million, compared to USD 5,296.58 million in the first half of the previous fiscal year.

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India, the world’s second-largest rice producer and the largest exporter, has consistently accounted for a significant portion of global rice exports. In 2023, India made up 33 per cent (17 million tonnes) of global rice exports, according to the U.S. Department of Agriculture (USDA), with Thailand and Vietnam serving as the main competitors in the global market. In 2022, before the export restrictions on Non-Basmati White Rice, India’s share was about 40 per cent.

India’s rice production has increased this year, with the Kharif season of 2024-25 expected to yield a record-high 119.93 million tonnes, a 5.89 per cent increase compared to the previous year’s 113.26 million tonnes. The government’s decision to ease export restrictions coincides with this bumper crop, helping replenish global rice markets and easing concerns about potential shortages.

India’s rice exports are divided into basmati and non-basmati categories. The non-basmati category includes several subcategories such as rice in husk, husked rice, parboiled rice, and broken rice. Basmati rice constitutes about one-third of India’s total rice exports. In 2023-24, India exported 52.42 lakh tonnes of basmati rice and 111.16 lakh tonnes of non-basmati rice.

The surge in rice exports is a reflection of India’s robust agricultural output and the government's strategic policy adjustments to support the global rice trade, benefiting both domestic producers and international markets.

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