India’s Rice Export Surge after Lifting Curbs

India’s Rice Exports Latest News

• India, the world’s largest rice exporter, witnessed a sharp rebound in rice exports in 2025 after the Union government lifted all export restrictions imposed during 2022–23. 
• The move has significant implications for global food prices, food security, agricultural trade policy, and India’s role in the Global South.

Key Developments

• Sharp rise in rice exports:
  • India’s rice exports rose 19.4% in 2025 to 21.55 million metric tonnes, the second-highest on record. 
  • This is close to the 2022 peak of 22.3 million tonnes. Exports had stood at 18.05 million tonnes in 2024.
  • Increased Indian supply pushed Asian rice prices to their lowest level in nearly a decade.
  • This has also reduced shipments from Thailand and Vietnam, India’s key competitors.
• Composition of exports:
  • Non-Basmati rice:
    • Exports surged 25% to 15.15 million tonnes. Major destinations are Bangladesh, Benin, Cameroon, Ivory Coast, Djibouti.
    • This indicates India’s role in food security for developing countries, especially Africa.
  • Basmati rice:
    • Exports increased 8% to a record 6.4 million tonnes. Key buyers are Iran, UAE, and the United Kingdom.
    • This reflects strong demand for premium agricultural exports.
• India’s dominance in global rice trade:
  • India exports more rice than the combined exports of Thailand, Vietnam, and Pakistan.
  • This reinforces India’s position as a “food security provider” in the developing world.

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Reasons for Export Rebound

• Policy relaxation: The government lifted the last export curbs in March 2025, including bans and minimum export prices. These curbs were earlier imposed to control domestic inflation and food prices.
• Record domestic production: Improved supplies due to record rice output, ensuring domestic availability.
• Price competitiveness: Indian rice is priced lower than Thailand and Vietnam, helping India regain lost global market share.

Overview of India’s Rice Production and Exports

• Production overview:
  • Leading producer: India is the top global rice producer, surpassing China, accounting for roughly 40% of global supply. 
  • Major producing states: Include Uttar Pradesh, Telangana, West Bengal, Punjab, and Chhattisgarh.
  • Record output: Production reached a record 137.8 million tonnes (LMT) in 2023-24, with forecasts for even higher output in 2025-26.
  • Success is attributed to: Favorable monsoons, increased planting area, technological advancements like the introduction of high-yielding dwarf varieties (e.g., IR-8, Jaya), and policy support. Though, India is facing scrutiny over water-intensive farming.
• Export dominance:
  • Top exporter: India leads the world in rice exports, often exceeding the combined exports of the next three largest exporters.
  • Major destinations: Key markets include Bangladesh, Benin, Nepal, UAE, Iran, and European nations, with new markets emerging. 

Challenges and Way Ahead

• Balancing domestic food security: With export competitiveness. Strengthen buffer stock management to avoid abrupt export bans.
• Risk of price volatility: If exports surge during weak monsoon years. Adopt a predictable and transparent export policy to enhance farmer confidence.
• Overdependence on rice exports: May discourage crop diversification. Use rice exports as a tool of food diplomacy, especially with Africa and South Asia. Encourage value-added rice products to increase export earnings.
• Climate risks: Affecting future production consistency. Promote climate-resilient rice varieties and water-efficient practices.

Conclusion

• India’s post-curb rice export surge underscores the country’s pivotal role in global agricultural markets and food security. 
• While competitive pricing and policy relaxation have strengthened India’s export leadership, a calibrated approach balancing domestic food security, farmer welfare, and global responsibility will be crucial for sustainable agricultural trade governance.

Source: TH