The Indian Rice industry is one of the most important industries in India. The major production of rice takes place in the states of Uttar Pradesh, West Bengal, Andhra Pradesh, Punjab, and Telangana. In India, the production of rice has increased from 85.5 million metric tons in 2018-19 to 110.15 million tons in 2020-21.
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.
The middle east region is a leading consumer of basmati rice which it imports from India and Pakistan. The region is responsible for as much as 37.8% of the total rice consumption. The major importing countries in the region are Saudi Arabia and the United Arab Emirates, which together accounted for 30 percent of Basmati rice exports from India in 2018.
India is the second-largest producer of rice after China and also the largest exporter of rice in the world. Production of rice in the country increased from 53.6 million tons in FY 1980 to 120 million tons in FY2020-21. India has exported rice valued at nearly 653 billion Indian rupees in the fiscal year 2021. This figure is significantly higher than the previous year’s export which had amounted to over 454 billion Indian rupees.