Non Basmati Rice Exporters: A Growing Market for Global Food Security
Non basmati rice is a term that refers to any rice variety that is not basmati, which is a long-grained, aromatic rice grown mainly in India and Pakistan. Non basmati rice comes in different shapes, sizes, colors and flavors, and is widely consumed in many parts of the world, especially in Africa, Asia and the Middle East.
Non basmati rice: India’s major export product
Non basmati rice exporters in India are among the largest in the world, accounting for about 40% of the global rice trade. India produces over 100 million tonnes of non basmati rice annually, and exports about 15 million tonnes to various countries. Some of the major non basmati rice varieties exported by India are IR64, Sona Masuri, PR11, PR14, Swarna, Ponni, Matta and Idly.
Challenges and opportunities for non basmati rice exporters in India
Non basmati rice exporters in India face several challenges and opportunities in the global market. One of the main challenges is the fluctuation in domestic and international prices, which affects the profitability and competitiveness of the exporters. Another challenge is the quality and safety standards imposed by the importing countries, which require strict compliance and certification from the exporters. Moreover, non basmati rice exporters have to deal with the impact of climate change, natural disasters, pests and diseases on the production and supply of rice.
On the other hand, non basmati rice exporters in India also have many opportunities to expand their market share and increase their revenues. One of the main opportunities is the growing demand for non basmati rice in many countries, especially in Africa, where rice consumption is expected to double by 2030. Another opportunity is the diversification of non basmati rice products, such as parboiled rice, broken rice, puffed rice and instant rice, which cater to different consumer preferences and needs. Furthermore, non basmati rice exporters can leverage their expertise and experience in producing high-quality and affordable rice to tap into new markets and segments.
The benefits of non basmati rice exports for the Indian economy and society
Non basmati rice exporters in India play a vital role in ensuring global food security and alleviating hunger and poverty. By providing a staple food for millions of people around the world, non basmati rice exporters contribute to the sustainable development goals set by the United Nations. Non basmati rice exporters also generate employment and income for thousands of farmers, traders, processors and workers involved in the rice value chain.
Non basmati rice exporters in India are constantly striving to improve their performance and competitiveness in the global market. They are adopting new technologies, innovations and best practices to enhance their productivity, quality and efficiency. They are also engaging in social and environmental responsibility initiatives to ensure their compliance with ethical and ecological standards. Non basmati rice exporters in India are committed to delivering excellence and satisfaction to their customers and stakeholders.
The Global Demand for Non-Basmati Rice Exporters
Non-basmati rice is a type of rice that does not belong to the basmati variety, which is known for its long grains, fragrant aroma and delicate flavor. Non-basmati rice comes in different shapes, sizes, colors and qualities, and is widely consumed in many countries around the world. Non-basmati rice exporters are the businesses that sell and ship non-basmati rice to foreign markets, where they compete with other rice producers and suppliers.
According to a report by ResearchAndMarkets.com, the global rice market is anticipated to reach US$ 271.04 Billion in 2028 with a CAGR of 3.71% from 2022 to 2028. The report attributes this growth to the population increase, rising food demand, changing dietary preferences, urbanization, economic development, trade liberalization and technological advancements. Among the major rice producing and consuming countries, China holds the largest market share, followed by India, Bangladesh, Indonesia, Vietnam and others.
India’s Record-Breaking Production and Export Ban
India is one of the world’s largest producers and exporters of non-basmati rice, accounting for about 25% of the global trade in 2020-21. India’s rice exports (basmati and non-basmati) rose by a huge 87 per cent to 17.72 Million Tonne (MT) in 2020-21 from 9.49 MT achieved in 2019-20. In terms of value realisation, India’s rice exports rose by 38 per cent to USD 8815 million in 2020-21 from USD 6397 million reported in 2019-20. India’s non-basmati rice exports was valued at USD 4796 million in 2020-21, with basmati rice exports a close second at USD 4018 million.
However, in August 2023, the Indian government imposed a ban on the export of non-basmati white rice due to rising domestic prices and inflation concerns. The ban was aimed at ensuring food security and stabilizing the local market amid supply disruptions caused by the COVID-19 pandemic. The ban affected many countries that relied on India as a major source of non-basmati rice, such as Nepal, Benin, Bangladesh, Senegal, Togo and others.
Pakistan’s Surging Exports and New Opportunities
The Indian export ban created a surge in the global demand for non-basmati rice from other countries, especially Pakistan . Pakistan is another significant producer and exporter of non-basmati rice, with a variety of types such as IRRI-6, IRRI-9, PK-386, KS-282 and others. Pakistan’s rice exports increased by 13.5 per cent to 4.85 MT in 2020-21 from 4.27 MT in 2019-20. In terms of value, Pakistan’s rice exports rose by 8.4 per cent to USD 2.17 billion in 2020-21 from USD 2 billion in 2019-20.
According to the Rice Exporters Association of Pakistan (REAP), Pakistan is projected to witness record-breaking rice exports worth over USD 3 billion in 2021-22 due to the increased demand from existing and new markets . The REAP chairman said that Pakistan has received orders from many countries that used to import from India before the ban, such as Nepal, Bangladesh, Sri Lanka and others . He also said that Pakistan has explored new opportunities in Africa and Asia, such as Timor-Leste, Puerto Rico, Brazil, Papua New Guinea, Zimbabwe and others .
The global demand for non-basmati rice exporters is influenced by various factors such as population growth, food consumption patterns, economic development, trade policies and technological innovations. India and Pakistan are two of the major players in the global non-basmati rice market, with India being the largest producer and exporter until recently. However, India’s export ban has created a gap in the global supply chain that Pakistan has capitalized on by increasing its production and exports. Pakistan has also diversified its markets by finding new customers in Africa and Asia. The future prospects of the non-basmati rice market depend on how long the Indian ban will last and how well Pakistan can maintain its competitive edge.
References:
https://apeda.gov.in/apedawebsite/about_apeda/Basmati_Characterstics.pdf
http://www.brc.org.uk/Downloads/Basmati_Code.pdf
https://archive.org/details/confrontingbiopi0000robi
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1782368
https://www.businesswire.com/news/home/20230830768542/en/Global-Rice-Market-Size-Analysis-Forecasts-Report-2023-A-270-Billion-Industry-by-2028—Chinas-Self-Sufficiency-Indias-Record-Breaking-Production-and-More—ResearchAndMarkets.com/
https://arynews.tv/indian-export-ban-sparks-surge-in-global-demand-for-pakistani-rice/
https://www.nation.com.pk/01-Aug-2023/indian-export-ban-sparks-surge-in-global-demand-for-pakistani-rice
https://web.archive.org/web/20170529170958/http://latifricemills.com/1121-basmati-rice/
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