Call it cereal or a sacred “Akshat” in Hindu rituals; rice has always been special among Indian folks and economists. Furthermore, it’s the staple cereal of India. Rightly so, its exports surpassed 20 million in 2021. It subsequently gives our nation a reason to be called the 2nd largest rice producer worldwide. However, this rice market in India has undergone an exponential transformation in recent decades.
This blog entails in detail a few groundbreaking timelines- trends, market size, report, and future of Indian rice mills. However, first, let’s catch up with India’s ever-evolving rice market trends.
Rice Market Trends in India
The Indian rice market has witnessed a gradual but significant evolution in recent years. The factors are numerous, however tangible. For instance, the automation of farming techniques has upscaled quality & productivity. Additionally, the implications of HYV seeds are enlivening crop yields substantially.
Listed below are some of the key rice market trends in India:
1. Government policies
For decades now, the booming agri-market has remained a major priority for the Indian government. To substantiate, the guidelines on import and subsidies have generously upscaled farming. And the rice market in India, to be precise.
Entailed below are a few major policies concerning factors associated with the rice market trend.
a.) Minimum Support Price (MSP): This scheme, along with removing non-tariff barriers, has significantly contributed to increasing Indian rice market value.
They have aided in making India one of the world’s leading rice-producing countries, to be precise.
Furthermore, it has also doubled the demand for Indian rice globally. Similarly, the implementation of schemes like Pradhan Mantri Fasal Bima Yojana (PMFBY), Pradhan Mantri Krishi Sinchai Yojana (PMKSY), and Soil Health Card Scheme (SHCS) are additionally the major steerers.
2. The arrival of Digitalization & Modern Technology
Gone are the days when people associated farming with ancient practices. Henceforth paving the way for modern techniques. For instance- macro data analytics, precision farming, mobile technology, and so forth.
3. Mechanisation and use of high-yielding variety (HYV) seeds
The inception and use of HYV seeds are called game changers in the Indian rice market. Rightly so, as it notably increased India’s exports and improved farmers’ livelihood.
4. Interdependence of the rice export market in India & international demand
India’s push towards rice exports has increased the demand for Indian rice in the global market.
Hence, in a nutshell, the Indian rice market has overseen dynamic trends through increased and developed mechanisation.
Now that we have a clearer picture of the Indian rice market let’s discuss this further. The following section discusses in detail the rice market size in India.
Rice Market Size in India
As discussed earlier, the rice market size in India is one of the largest in the world. To substantiate with data, India’s total area of rice cultivation is around 44 million hectares.
Moreover, the overall rice production accounts for approx 144 million tons. However, the market size is wider than the production or area count.
For instance, India also is championing domestic consumption of rice. This achievement is accompanied by around 100 million tons as yearly consumption. So now it connects a dot to what we entailed in the previous section. Yes, you got that right.
The govt policies further acted as a catalyst for upscaling the Indian rice market size. For instance, MSP exists for paddy and subsidies for inputs- fertilisers, seeds, and irrigation.
More importantly, the pragmatic approach, like promoting rice exports to increase demand, has been a game changer. Thus, enabling India to shelf 12 million tons of exports in the past few decades.
Here’s What the Stat Says
As per the reports from Statista, In 2023, the Rice segment’s revenue is projected to be US$93.10 billion. Moreover, the experts predict annual market growth of 6.40%, CAGR 2023-27.
To put it forth, the Indian rice market has a macro reach, coalescing production, consumption, and export. Apart from the policies and automation in farming, weather conditions majorly influence this market.
Moving forward with the blog, let’s attain some insights on the rice market report in India.
Rice Market Report in India
What’s better than authenticating a claim with data and statistics? That, too, when addressing the rice market in India. Hence, let’s get acquainted with some numbers concerning the rice business of our country.
As published by Statista, India’s rice volume production rose to 124 million metric tons. A tiny exception here comes into play, though.
To comprehend, excluding a few years, the rice production performance has seen substantial growth over the past decade.
Furthermore, the reports indicate yet another interesting data. According to the Research and Market, the total supply volume for packaged rice in 2021 was 10.96 million.
Correspondingly, the report highlighted a few major projections. For instance, experts predict the market to surpass 15.33 Million Tons by FY 2027. This would constitute a CAGR of 6.10% (2022-27). Nevertheless, Covid19 makes the market prone to uncertainties.
Henceforth, this demands conducting frequent monitoring and analyses. Here evaluation is concerning the pandemic’s influence on the Indian rice market.
Apart from the gains, the rice market revolution has presented some propelling future projections. One such prediction is the future of rice mills in India.
Future of Rice Mill in India
While the policies, schemes, and farming automation have stirred the transformation of the Indian rice market, the future beholds more. Therefore, there are further projections concerning the rice milling market in India.
Correspondingly, Cision indicated the 50-ton segment of the rice mill market share is crucial for profit acquisition. It is because of the efficiency of the 50-ton segment mill plant in producing rice faster.
Moreover, it has a consistent performance, favourable for small-scale rice factories.
Therefore, with all the above-discussed specifications comes further predictions. To illustrate, the Indian rice milling market is anticipated to surpass 49.43 million USD (2021-26).
Conclusion
Throughout the blog, we walked you through the nuances concerning the Indian rice market transformation.
We saw how this market is majorly inclined towards multiple factors. Govt policies, weather conditions, farming tools, and techniques, to name a few. The market, however, is also affected due to calamities and natural disasters.
As a result, this increases the adversities of crop yields. Moreover, the substitute crops like soybeans and cotton are now branching out more than rice.
Nevertheless, continuous efforts by agriculture experts, economists, and the government have kept the rice market experimental.
Frequently Asked Questions
Ques. How important is the rice market in the Indian economy?
Ans. Rice is a staple Indian cereal and comes with different qualities. This, in turn, results in a stable supply and demand presence. Ultimately also helping the economy to reduce poverty and hunger.
Ques. What is the nature of the rice market?
Ans. The rice market often falls under the category of an oligopoly market. Herein, the forces of demand and supply determine its pricing.
Ques. What are the major methods of rice cultivation?
Ans. There are multiple yet conventional methods for rice cultivation. Some are control of level, crop rotation, fertiliser disbursal, and post-harvest assessment.
Ques. What are the major mechanical tools for rice cultivation?
Ans. Farmers in India now use tools like Rotavators, Comb Harrow, Disc Plough, and Mechanical Transplanters. Moreover, they use mould board plough and Disc Harrower.
Ques. What does a rice mill mainly consist of?
Ans. A rice market mill uses machines like Paddy Cleaner, Rice Grader, Huller, Dehusker, and Destoner. Additionally, you would find machines like Paddy Separator.
Related Blog
9 Rural Marketing Strategies To Succeed In Rural India
Top 10 Richest Farmers In India With Complete Biography
