Rice Exports Expected to Reach 200–220 Lakh Tonnes in Current Financial Year
28-Apr-2025 07:48 PM
New Delhi, April 28, 2025 – The Central Government has completely lifted all controls, restrictions, and customs duties on the export of all varieties and categories of rice, providing a major opportunity for India to boost shipments of this key food grain.
Despite the late removal of export restrictions in the last financial year, rice exports still reached 198 lakh tonnes. With a favorable environment in place from the beginning of the 2025–26 financial year, total exports are expected to rise to between 200 and 220 lakh tonnes.
According to Rajesh Pahariya, an agri-commodity expert and major rice exporter, international demand for rice had been weak recently due to an oversupply in the global market.
However, conditions are now shifting. Pakistan’s exportable rice stock is nearly exhausted, and new crops from Vietnam are yet to arrive.
Additionally, Thai rice prices remain high. These factors are likely to fuel a sharp rise in Indian rice exports between May and July.
Pahariya added that India had achieved record rice exports during the COVID-19 pandemic, and similar performance is now within reach. Indian rice continues to be competitively priced in global markets. However, if demand surges strongly from importing countries, some price increases may occur.
Domestically, India holds a stockpile of rice nearly three times (296%) higher than the minimum buffer stock requirement, ensuring smooth supply and availability within the country. However, the quality of the rice held by government agencies is reportedly not very high.
Meanwhile, 24 lakh tonnes of rice have been allocated to ethanol manufacturers at a subsidized rate of Rs 2,250 per quintal.
An important development is that importing countries are now securing good-quality Indian rice at very competitive rates.
Bangladesh, for example, has issued an export quota of 18,450 tonnes for a semi-Basmati variety of rice. Despite large-scale government procurement,
domestic paddy prices have softened to hover around or slightly below the Minimum Support Price (MSP). The arrival of Rabi season paddy has already begun, further increasing availability.