The central government, led by prime minister Narendra Modi, overturned the prohibition on rice exports in a significant decision that rocked the world rice market and put more pressure on other countries that export rice. Given that more than 42% of India's 1.4 billion people depend on agriculture, the decision, which coincides with the country's efforts to increase agricultural exports, aims to raise farmer incomes.
Reports state that the Modi government's action has lowered rice prices globally, with Thai white rice now selling for $405 a tonne, down from $669 in january 2024. According to Commerce minister Piyush Goyal, india wants to export food and agricultural goods valued at $100 billion by 2030, which is double the $48.15 billion amount from 2023–2024.
"India exported almost $50 billion worth of agricultural products last year. However, we aim to surpass the $100 billion milestone by 2030," Goyal stated, noting that the government has also loosened regulations on sugar exports.
Pakistan has suffered losses
Cash-strapped pakistan, which had gained markets in nations like indonesia and east Africa after india stopped exporting, has suffered as a result of India's decision to remove restrictions on rice exports. The prices of Pakistani non-basmati rice dropped from $850 per tonne to $650 per tonne nearly immediately after india relaxed its embargo on its rice exports in september of last year, according to Ibrahim Shafiq, export director of Latif Rice Mills in Lahore.
"The inexpensive indian rice was once again available in the African and Indonesian markets as soon as india entered the market again. In contrast to prior years, this has resulted in a decline in Pakistan's rice export earnings," he disclosed. By May 2025, pakistan is expected to export 58 lakh tons of rice, an 11.4% decrease from the previous year, according to the US Department of Agriculture.
India will regain the market
India's successful comeback to the rice market is expected to cause a significant disruption in markets that other rice exporters had previously controlled since consumers are likely to choose indian rice again because it is less expensive. "Countries like pakistan, Vietnam, and thailand took a portion of the market when india pulled out. However, they won't be able to compete until india returns. Samarendu Mohanty, an economist based in Bengaluru, predicted that india would retake these markets and drive out all competitors.
Analysts predict that a rise in India's exports will lower the cost of rice for African nations, while also helping producers of ethanol and animal feed in east Asia.
According to data from the international Food Policy Research Institute, broken rice, which made up over 80% of India's rice exports in 2018–20, is seen as an important market in Africa. More than 80% of nine countries, including Somalia, and more than 60% of 17 African countries' rice imports in 2022 came from India.
Reports state that the Modi government's action has lowered rice prices globally, with Thai white rice now selling for $405 a tonne, down from $669 in january 2024. According to Commerce minister Piyush Goyal, india wants to export food and agricultural goods valued at $100 billion by 2030, which is double the $48.15 billion amount from 2023–2024.
"India exported almost $50 billion worth of agricultural products last year. However, we aim to surpass the $100 billion milestone by 2030," Goyal stated, noting that the government has also loosened regulations on sugar exports.
Pakistan has suffered losses
Cash-strapped pakistan, which had gained markets in nations like indonesia and east Africa after india stopped exporting, has suffered as a result of India's decision to remove restrictions on rice exports. The prices of Pakistani non-basmati rice dropped from $850 per tonne to $650 per tonne nearly immediately after india relaxed its embargo on its rice exports in september of last year, according to Ibrahim Shafiq, export director of Latif Rice Mills in Lahore.
"The inexpensive indian rice was once again available in the African and Indonesian markets as soon as india entered the market again. In contrast to prior years, this has resulted in a decline in Pakistan's rice export earnings," he disclosed. By May 2025, pakistan is expected to export 58 lakh tons of rice, an 11.4% decrease from the previous year, according to the US Department of Agriculture.
India will regain the market
India's successful comeback to the rice market is expected to cause a significant disruption in markets that other rice exporters had previously controlled since consumers are likely to choose indian rice again because it is less expensive. "Countries like pakistan, Vietnam, and thailand took a portion of the market when india pulled out. However, they won't be able to compete until india returns. Samarendu Mohanty, an economist based in Bengaluru, predicted that india would retake these markets and drive out all competitors.
Analysts predict that a rise in India's exports will lower the cost of rice for African nations, while also helping producers of ethanol and animal feed in east Asia.
According to data from the international Food Policy Research Institute, broken rice, which made up over 80% of India's rice exports in 2018–20, is seen as an important market in Africa. More than 80% of nine countries, including Somalia, and more than 60% of 17 African countries' rice imports in 2022 came from India.
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