India Rice Exports Soar Near Record High After Export Curbs Lifted
Overview
India's rice exports surged 19.4% to 21.55 million tons last year, nearing a record high after the government removed all export curbs. This move boosted competitiveness, curbed rival shipments, and lowered global prices, benefiting consumers worldwide.
India's rice exports jumped 19.4% last year, reaching the second-highest volume on record. Shipments climbed to 21.55 million metric tons from 18.05 million in the prior year. This surge follows New Delhi's decision to lift all export restrictions in March, significantly boosting Indian grain's competitiveness. Record domestic production enabled the government to remove curbs imposed in 2022 and 2023.
Competitive Edge
Non-basmati rice shipments alone saw a 25% increase, totaling 15.15 million tons. Premium basmati exports climbed 8%, hitting a record 6.4 million tons. This influx of supply from the world's largest exporter has put pressure on rivals like Thailand and Vietnam. Asian rice prices have consequently fallen to their lowest levels in nearly a decade, a significant relief for consumers in Africa and other price-sensitive regions.
Market Dynamics
Indian rice now commands a considerable price advantage. Industry officials noted the strong competitiveness against global supplies. This cost-effectiveness has been key for India to regain lost market share. Key destinations for non-basmati rice included Bangladesh, Benin, Cameroon, Ivory Coast, and Djibouti. Iran, the United Arab Emirates, and Britain increased purchases of premium basmati.
India typically exports more rice than the combined shipments of the world's next three largest exporters. The government's policy shift demonstrates its substantial influence on global food security and commodity prices.
