India Rice & Derivatives Market- Trend Analysis & Forecasts

India Rice & Derivatives Market Overview:
India’s rice industry, valued at around US$ ** billion in 2024, is projected to reach US$ ** billion by 2032, expanding at a CAGR of **%. With annual production exceeding ** million tonnes, India contributes nearly **% of global rice output and remains the world’s largest exporter, accounting for 40% of global trade. The country’s rice ecosystem spans over 90,000 mills, with modernized facilities in Punjab, Haryana, and Andhra Pradesh achieving 2–3% higher recovery rates through automation and grading technology. Alongside grains, the derivatives sector—including rice bran oil, de-oiled rice bran (DORB), and broken rice for ethanol—adds an estimated US$ ** billion in annual value. Broken rice output of around 7 million tonnes supports ethanol blending and feed industries, reflecting India’s transition from a volume exporter to a diversified agri-industrial leader.

Primary Areas/ Elements of Research & Analysis
The report provides comprehensive and valuable insights into the supply and demand dynamics of the India rice & derivatives market. Below are the variables considered and analyzed in the report:
• Supply-demand trends, market growth, and trade
• Market structure, conduct, and performance analysis
• Historical and forecasted market size (volume & value)
• Trade analysis (export & import), including key partners, quantities, values, and price trends
• Supply chain mapping, pricing, and regulatory framework
• Competitive landscape profiling of key players
• Factors influencing market performance, including sustainability trends

Market Growth Factors
Rising global demand and India’s competitive pricing are key drivers of market expansion. Export volumes reached ** million tonnes in 2024, generating nearly US$ ** billion in revenue. Domestically, higher disposable incomes have fueled consumption of premium, packaged, and parboiled rice, which now accounts for nearly **% of retail sales compared to **% in 2018. Industrial diversification—particularly ethanol production—has created fresh offtake for ** million tonnes of broken rice annually, valued at US$ ** billion. Meanwhile, rice bran oil consumption surpassed ** thousand tonnes in 2024, growing at **% per year due to health-conscious consumers and government edible-oil substitution policies. Ongoing support through productivity missions and solar pump schemes continues to sustain output across 44 million hectares of cultivated land.

Market Restraints & Challenges
Water intensity remains the sector’s most pressing issue, as paddy requires 3,000–5,000 liters of water per kilogram, posing sustainability risks in semi-arid states. Climate volatility—such as erratic monsoons—can lower yields by 5–10% annually. Policy uncertainty, including temporary export bans on non-basmati rice, has led to inventory backlogs of over 3 million tonnes, affecting mill cash flows. Energy and logistics costs, which represent about **% of total milling expenses, further pressure small-scale operators. The derivatives industry also faces technical constraints such as limited solvent extraction capacity and the need for stricter residue management to meet global rice bran oil standards. These structural barriers highlight the need for mechanization, stable policy, and sustainable water management.

Market Segmentation
India’s rice market is dominated by non-basmati varieties, which make up 80% of production and US$ ** billion in exports, while basmati rice contributes around US$ ** billion with ** million tonnes of premium exports. On the derivative front, rice bran oil production has exceeded ** million tonnes, supported by edible oil demand in Asia and the Middle East. DORB exports reached 1.3 million tonnes in 2024, serving animal and aqua feed markets. Broken rice, once a low-value by-product, now powers India’s ethanol sector, with distilleries consuming nearly ** million tonnes annually. Emerging categories such as rice flour and starch, valued at over US$ ** billion by 2032, are growing at **% CAGR due to rising use in processed foods and gluten-free diets. The food and beverage segment remains dominant with **% of total consumption, while biofuel and feed industries are rapidly expanding.

Competitive Landscape
India’s rice industry is moderately consolidated, with leading exporters such as KRBL, LT Foods, and Chaman Lal Setia commanding over 50 % of basmati exports. The non-basmati trade is driven by regional players like Ponni Rice Mills, Kohinoor Foods, and Shri Lal Mahal Group, supported by milling capacity upgrades in export-focused states. In the derivatives sector, firms such as Ricela Health Foods, A.P. Organics, and SVROil Industries dominate rice bran oil production, collectively processing more than 1 million tonnes of bran annually. The ethanol market has attracted investments from Balrampur Chini Mills, Triveni Engineering, and Grainspan Nutrition, leveraging broken rice feedstock. FMCG majors like Adani Wilmar and ITC have expanded into packaged rice, growing retail sales by **% annually. Rising private investments and modernization are steadily shifting India toward a more integrated, brand-driven rice ecosystem.

Market Outlook
By 2032, India’s rice and derivatives market is expected to reach US$ ** billion, driven by sustained productivity growth, export diversification, and rising industrial demand. Basmati exports are projected to grow at **% annually, while non-basmati exports expand by 5–6%, particularly to Africa and Southeast Asia. Rice bran oil is on track to become a US$ ** billion segment by 2032, supported by health awareness and global edible oil substitution trends. Broken rice utilization for ethanol may double to ** million tonnes, contributing significantly to India’s **% ethanol blending target by 2030. The market’s long-term success will hinge on managing water efficiency, stabilizing trade policy, and fostering innovation in high-value derivatives. India is poised to remain the largest global rice exporter and emerge as a hub for rice-based industrial products, uniting food, feed, and fuel value chains under a sustainable growth model.

Scope of the Report:
• Historical Years: 2018-2023
• Base Year: 2024
• Forecast Period: 2025-2032
• Units: Value (US$ Million) and Volume (Thousand Tonnes)
• Attributes Covered: Production, Consumption, Export, and Import
• Segments Covered:
By Type (Basmati and Non-basmati)
By Derivative Type (Rice Bran Oil, De-oiled Rice Bran, Broken Rice, Rice Flour & Starch, and Others)
By End-use Industry (Food & Beverage Industry, Industrial/Biofuel Sector, and Feed Industry)
By Sales (Domestic Sales and Exports)
• Companies Profiled: The market players include, KRBL Ltd., LT Foods Ltd., Chaman Lal Setia Exports Ltd., Kohinoor Foods Ltd., Amira Nature Foods Ltd., Shri Lal Mahal Group, Ricela Health Foods Ltd., A.P. Organics Pvt Ltd., SVROil Industries Ltd., Adani Wilmar Ltd., ITC Agro Business Division, Godrej Agrovet Ltd., Avanti Feeds Ltd., Balrampur Chini Mills Ltd., Triveni Engineering & Industries Ltd., and Others.

Please note: It will take 4-5 business days to deliver the report upon receipt the order. Show more