India Eyes 26 New Markets to Tap ₹1.8 Lakh Crore Rice Export Opportunity

India is expanding its rice export reach by targeting 26 new countries, including Saudi Arabia, Indonesia, Japan, Mexico, and the United States. The move is part of a plan to grow India’s presence in the global rice trade and capture a ₹1.8 lakh crore opportunity by tapping new markets beyond its traditional buyers.

India’s Current Rice Export Performance

In the financial year 2025, India exported 19.86 million tonnes, a 21.5% increase from the 16.36 million tonnes figure of the previous financial year. This reaffirmed India’s position as the top rice exporter across the globe.

Out of the total FY25 export figures, 59.44 lakh tonnes were basmati, 90.44 lakh tonnes were parboiled, 33.23 lakh tonnes were non-basmati white, 7.95 lakh tonnes were broken rice, and other varieties accounted for 7.59 lakh tonnes.

Strategies India is Adopting to Tap Into 26 New Markets for Rice Exports

Here are the key strategies India is adopting:

BIRC Trade Platform

India is eyeing the Bharat International Rice Conference (BIRC) 2025 in New Delhi to showcase its rice varieties. Besides trade, the event focuses on bilateral negotiations to highlight India’s GI-tagged basmati and non-basmati rice. Delegations from all importing countries will be invited for structured buyer-seller meetings, MoU signing, and a varietal demonstration. The conference will also feature sessions on phytosanitary compliance, logistics, and digital traceability.

AI-Powered Grading

To meet stringent quality standards in premium markets like Japan, Germany, and the US, India is introducing AI-powered colour sorter-cum-grader machines across major rice milling clusters. These machines enhance precision in grain size, colour, and impurity detection, reducing rejection rates and improving the consistency of export-grade products. The technology is being displayed at BIRC 2025 and is backed by the Agricultural and Processed Food Products Export Development Authority’s (APEDA) infrastructure subsidy schemes. This upgrade is important for entering markets where quality differentiation is key.

Targeted Displacement

India is advocating parboiled and long-grain non-basmati rice in Iraq and Saudi Arabia as alternatives to the Pakistani IRRI-6. In Vietnam and Indonesia, aromatic basmati rice is promoted as an alternative to Thai Jasmine rice. This displacement strategy is supported by comparative cost-benefit analyses and by tailored promotional campaigns based on India’s reduced pesticide residues, competitive prices, and variety of cereals offered.

Customs Harmonisation

India is negotiating bilateral agreements with importing nations to standardise customs codes and sanitary and phytosanitary (SPS) protocols. As an example, APEDA is collaborating with regulators in Latin America to align fumigation protocols and pesticide residue limits. This will reduce delay at the ports and improve transparency into compliance. The plan includes pre-shipment certification, digitisation, and integration with ICEGATE and e-SANCHIT to speed up documentation for exporters.

Geo-Tagged Rice Promotion

India is promoting its GI-tagged rice varieties—in particular, Ambemohar from Maharashtra and Joha from Assam—to niche markets in products like France and Japan, where the regional provenance of food has significant influence. These products are being marketed as part of a culinary diplomacy approach, with chefs conducting tasting events. The GI (Geographical Indication) certification and associated trademarking also help distinguish Indian rice from competitors in saturated markets and improve prospects for premium pricing. Exporters are training to provide QR-coded packaging that links to traceability portals detailing the origins of rice.

Bulk Logistics Modernisation

India is developing inland container depots (ICDs) and rail-connected rice hubs in Punjab, Chhattisgarh, and Andhra Pradesh to facilitate bulk exporting to distant locations. APEDA and the Container Corporation of India Limited (CONCOR) in the past jointly developed temperature-controlled storage and containerised rail corridors to cut transit time and reduce spoilage. This international logistics transformation is necessary to expand into temperate and high-volume markets, as the shelf-life of rice and reliability in delivery remain predominant issues.

Global Context: Competition and Opportunity

The structure of the global rice trade has shifted significantly. Climate shocks in Southeast Asia and export prohibitions by some countries created an opening for India. Countries such as Thailand and Vietnam face challenges with production costs and water scarcity, which give India a cost and supply reliability advantage.

However, India’s diversification strategy is not only about filling temporary supply gaps. Instead, the goal is to establish long-lasting trading relationships with consistent quality, improved packaging, and adherence to sustainability norms through a balanced plan to protect India’s exporter reputation and long-term market access.

Economic and Market Implications

The diversification of rice exports will affect the entire Indian agricultural economy. Exporters and processors may earn higher margins from exporting to premium markets, while farmers may benefit from higher prices from contract farming or export-linked incentives. This may present an investment opportunity for agri-input companies, logistics providers, and listed processors.

Export-linked agricultural businesses may gain favour as global demand patterns evolve, as will value-added segments, including fortified and organic rice, which will continue to attract investment in processing technology.

Sources

India Brand Equity Foundation
India Brand Equity Foundation
Business Standard
Outlook Business