Rising global demand, lower price of Indian rice than competitors to boost exports: IREF

NEW DELHI: India's rice exports have risen 13 per cent in value terms during the first half of this fiscal year, and the outlook remains strong as the country has surplus stock to meet rising global demand, according to the industry body IREF.


In an interview with PTI, Indian Rice Exporters Federation (IREF) Vice President Dev Gard said the price of Indian rice is at least 10 per cent cheaper than competitors.


According to government data, India's rice exports grew 13 per cent to Rs 54,937.71 crore in the first six months of this fiscal year. India produced over 154 million tonnes of rice in the 2025-26 crop year ending in June.

"Indian rice prices are at an all-time low. Our export prices are almost 10 per cent cheaper than the second alternative available in the market, that is Thailand or Myanmar," Garg said.

The global demand is also expected to rise because of the likely fall in production amid El Nino threat, he added.

"India with the lowest prices and an increasing global demand is poised to export much more. So the business fundamentals are much stronger this year. So definitely the export volume will go up," he said on the sidelines of a Bharat International Rice Conference 2026 being organised by the IREF during October 23-25.

"So our exports last year were around 22 million tonnes and USDA has projected them to be around 24 million tonnes this year. I am quite sure that we will even surpass this 24 million tonne benchmark," Garg said.

He said the country exported around Rs 1,12,000 crore of rice last fiscal, with almost equal contribution of basmati and non-basmati rice.

Asked about challenge before the industry, he said, "Iranian crisis is one of the major challenges. we export more than 74 per cent of all our Basmati to the Middle East."

"When there is a war, there is more demand for rice. So the demand definitely went up, and people were willing to pay more. But if this war continues for a long time, I doubt how long buyers can pay such huge prices and maintain these buying levels. So this is one risk that the industry faces," he said.

Garg also pointed out that any change in rice-related trade policies could pose a threat.

"At present, rice is not subject to any restrictions. There is no export duty, no minimum export price, and no restriction on rice exports. The government should continue with its current policy," he said, when asked about the demand from the federation side.

On the Bharat International Rice Conference, Garg said participants from more than 150 countries are attending this three-day event.

The IREF is showcasing more than 200 rice varieties from around the world. It is also displaying various value-added paddy products.

The event is also expected to generate a lot of export orders for Indian players.