Rice is the common food for more than half the world’s population. It is the second-largest cereal crop produced in the world after corn. Rice is also a key staple food in many parts of Asia, North America, South America, and Europe. The global rice market is expected to rise at a CAGR of more than 2% by 2022. This rise can be attributed to the growing population and increase in demand for different varieties of rice such as brown rice, basmati rice, and jasmine rice. Moreover, factors such as increasing disposable income, rapid urbanization, and changing dietary patterns are expected to contribute significantly to the growth of this market during the forecast period. Moreover, countries such as India and China are major producers of rice globally.
Global Rice Production
The United States Department of Agriculture (USDA) has projected global rice production to increase from 479.6 million tonnes in 2020-21 to 482.8 million tonnes during 2021-22.
The USDA has estimated that global rice consumption may increase by about 0.5 percent during 2021-22, which is higher than the increase of 0.1 percent witnessed in 2020-21.
As per USDA, the global rice exports are expected to increase from 44.8 million tonnes in 2020-21 to 45.4 million tonnes in 2021-22 as a number of markets are expected to recover from the coronavirus pandemic induced slowdown.
Global Rice Consumption
Rice is the world’s most important staple food. The global bulk rice production and consumption occurs in Asia, which accounts for 90% of total production and 80% of total consumption. India, China, and Indonesia are the three largest rice markets in the world, combining to account for 62% of global rice consumption.
Rice is a major part of Asian diets, particularly in Southeast Asia, where rice consumption can reach up to 6-7kg per person per month. Rice is consumed as a main meal at least once a day in many Asian countries, with 70% or more of their daily caloric intake coming from rice in places like Bangladesh and Cambodia.
Global Basmati rice trade
Global Basmati rice trade is expected to rise at a CAGR of more than 7% during the forecast period 2021-2022.
This is due to the increasing investment by governments in enhancing their export and import capabilities. For instance, in 2020, India’s government approved an investment of INR 300 crore under the ‘Operation Greens’ scheme to double the exports of fruits and vegetables to INR 80000 crore by 2024-25. The scheme also aims to increase the export value of onions from INR 25 billion in 2018-19 to INR 100 billion by 2022. Thus, with increasing government investments for upgrading facilities for boosting exports, it is expected that the demand for basmati rice will be high during the forecast period.
The demand for organic basmati rice is increasing owing to its health benefits. For instance, organic basmati rice has a low glycemic index, which helps in maintaining a healthy level of blood sugar. Thus, with an increase in awareness among consumers about these health benefits and low glycemic index, it is expected that there will be an increase in demand for organic basmati rice during the forecast period 2021-2022.
Rice export from India
Rice export from India has increased by 14.5% in 2020-2021 as compared to 2019-2020. As per the APEDA report, there are 57 varieties of Basmati rice grown in India. Basmati rice is exported to different countries with a value of about Rs 22,600 crores for the year 2020-2021.
There are many varieties of Indian rice available in India. The export of Basmati rice and non-Basmati rice is done throughout the world. The export of non-basmati rice is more than Basmati rice.