Agri Commodities Rice

Non-Basmati Rice Exports from India: An Overview

Non-Basmati Rice Export from India

India is a major non-basmati rice exporter in global markets giving stiff competition to Vietnam. Thailand and the USA are the other two countries producing and exporting parboiled rice and 100% broken rice. In the financial year 2021, India witnessed an increase in exports driven by record-high sales of non-basmati (13.9 million tons) and Basmati rice (4.6 million tons). According to the Agriculture and Processed Food Products Export Development Authority (APEDA), the shipments of Non-Basmati Rice rose 115.44 percent to $3.51 billion in April-January 2020-21 from $1.63 billion in the same period in 2019-20.

Rice features among the most exportable commodities from India with strong demand. The worldwide markets for Indian rice are highly dynamic in nature and the barriers to trade are slowly but surely being lowered in different parts of the world.

The major countries importing non-basmati rice from India are China, the Philippines, the USA, Ivory Coast, Senegal, Benin, United Arab Emirate, Bangladesh, Guinea, and Somalia. The market drivers of this trend include the following:

  • Growing consumer demand for rice
  • India’s strength in growing high-quality basmati as well as non-basmati rice
  • A liberal export policy
  • Price competitiveness

The export demand is high because of the price competitiveness of Indian non-basmati rice in the world market. Indian Rice is available in the $360-390 per tonne range as compared to Thailand’s $495 per tonne, Vietnam’s $470 per tonne, and Pakistan’s $440 per tonne. Non-Basmati rice price in India is the best in the industry.

Non-basmati Rice Exporters in India in recent times

According to the All India Rice Exporters Association (AIREA), Bangladesh is most likely to procure 50,000 tons of rice through the National Cooperative Marketing Federation of India (Nafed) in the financial year 2021 and boost trade in non-basmati trade in the country. The other two countries expressing strong demand for India’s non-basmati rice are Africa and China.

China is emerging to be a major importer of non-basmati broken rice from India, which they are using to manufacture noodles and wine. In the financial year 2021, there has been a spike in exports to China with the country placing large orders with Indian rice companies.

African nations feature among the biggest importers of Indian non-basmati rice. In the year 2020-21, Africa accounted for 54% of India’s $4.79 billion non-basmati rice shipments. Benin was the largest importer of rice valued at $443 million. Countries in West Asia and Africa have increased their non-basmati imports over the past few months to create a reserve stock of the cereal in anticipation of global food scarcity. Countries that have demonstrated a significant increase in imports in different types of non-basmati rice between April and December 2020 are Iran, Madagascar, Malaysia, Benin, Togo, and Senegal.

The Philippines is another major importer of Indian rice; it has demonstrated its eagerness to import by reducing the import duty on rice being shipped from India from 50 percent to 35 percent in May 2021.  Earlier in the year, Bangladesh had reduced import duty on rice to 25% from 62.5%. Indian exporters can make the most of the events to supply non-basmati rice to these countries and accrue better prices for their shipments.

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