India’s rice exports in 2021 reached a record, which has never ever been seen in the past few years. Rice suppliers in India are certain to benefit from this accomplishment. It is undeniable that there are many merits in making rice suppliers in India prosperous.
- 1 An overview of rice suppliers in India
- 2 Competitive advantages of rice suppliers in India
- 3 Factors affecting the products’ price of rice suppliers in India
- 4 Top 5 reputable rice suppliers in India
An overview of rice suppliers in India
Rice suppliers in India play an important role in the agricultural sector, contributing significantly to the country’s economic development, foreign exchange revenues, and employment rates.
Main locations of rice suppliers in India
West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Tamil Nadu, Orissa, Bihar, and Chhattisgarh are now the major rice-growing states in India, accounting for 72% of total rice-producing land and 75% of total rice output. Rice suppliers in India are mainly located in these regions to facilitate transportation and processing.
West Bengal is India’s leading rice-producing state. Rice farming covers approximately half of the region’s arable land or around 5 million hectares of rice-growing land. West Bengal produced over 14.8 million tonnes of rice in 2016, maintaining its position as India’s leading rice producer. Rice suppliers in India always try to take advantage of this huge planting area.
Leading products of rice suppliers in India
Almost all rice suppliers in India sell basmati rice – the most famous rice of India. Besides, they also provide some other rice varieties like parboiled rice, steam rice, etc.
- Basmati rice
Basmati rice is a unique kind of rice that was found on the Indian subcontinent a few years ago. Basmati rice has a peculiar scent of pandan leaves, which gives the user a strange impression. Basmati rice has 12 times more 2-acetyl-1-pyrroline than other forms of rice. Saudi Arabia was the largest importer of basmati rice from rice suppliers in India, followed by the United Kingdom, Kuwait, and UAE. Rice suppliers in India export basmati rice at the price of 380-400 USD/ton.
- Parboiled rice
Parboiled rice, also known as converted rice, gets its name from the fact that the rice is partially cooked while still in its husk. In India’s southern states, parboiled rice is particularly popular. India controlled the parboiled rice trade in 2020. Parboiled rice is consumed in large quantities in areas of India, Brazil, and other nations. Rice suppliers in India export basmati rice at the price of 364-369 USD/ton.
Some key importing markets of rice suppliers in India
India is the world’s largest exporter of rice. India exports a variety of rice, with basmati rice being the most popular.
- Saudi Arabia
In terms of rice exports, Saudi Arabia stands at the top of the list. Saudi Arabia likewise shares its 63% rice import share with the rest of the world. Rice suppliers in India’s basmati rice is in high demand throughout the country. This is precisely why India’s government is hoping to enhance basmati rice exports through support. They are also increasing their trade missions and international involvement.
Iran is ranked second in the world, importing 11% of India’s total rice export. Iran is also on the list of nations importing rice from India. In 2015, Iran was ranked as the top exporter of long-grained and fragrant rice in the world. Given the size of its population, it is possible to conclude that it has a large rice demand from rice suppliers in India.
- Some other countries
The United Arab Emirates imports from large mills in India on a regular basis, ranking third by 8.6%. In the United Arab Emirates, demand for Indian Basmati rice is increasing. Iraq purchases 6.1% of India’s total rice exports. This country also uses a lot of rice and imports high-quality rice from rice suppliers in India on a regular basis. About 65% of India’s total rice exports are imported by Asian countries. Africa comes in second with 24%, followed by Europe with 7%.
Competitive advantages of rice suppliers in India
India has always remained the leading rice exporter and producer in the world. Therefore, rice suppliers in India benefit greatly from the advantages of the country and the government.
Innovation of farm practices
- Thanks to innovative technologies and ways of adapting to climate change affecting rice production, rice suppliers in India have always reaped great profits and constantly overcome difficulties encountered.
- The government of India uses digital and mobile technologies to develop agricultural information support services for farmers. In addition, the scientists also developed a mobile application “rice expert” to provide information to farmers on issues related to diseases, rice varieties, agricultural tools, etc.
- India has expanded access to cost-effective modern technologies especially agricultural biotechnology to make a big impact on production costs and prices for agricultural commodities. At the same time, applying advanced machines and tools to agricultural production helps to increase productivity.
Low-cost rice products
India offers low-priced rice varieties, mainly basmati rice. This is delicious rice that is the pride of India when it earns huge annual sales. With only $380/ton, developing countries in Africa or the Middle East can meet their domestic food needs. Meanwhile, with longer shipping distances, and somewhat higher prices such as Thai Hom mali rice for over $1000/ton or Vietnamese long-grain rice for $680-700/ton, Rice suppliers in India are benefiting because of the low cost of the product.
Factors affecting the products’ price of rice suppliers in India
Rice suppliers in India can change the price of rice products monthly, subject to domestic factors or external elements like freight rate or high demand.
- Rice production in India
Rice output reached a new high of 122.27 million tons in the 2020-21 crop year, up from 118.87 million tons the previous year, according to the statistics. India has so far exported 13.1 million metric tons of rice in 2020-21, compared to 5.1 million metric tons in 2019-20. With the increase in output and export, rice suppliers in India sells rice at a quite cheap price. In contrast, the supply of parboiled rice is very limited and that is why the price is going up.
- Rice demand
North and West African countries are also importing from India, with Benin leading the way. It acquired 1.2 million tons of rice from India last fiscal year, up from 0.54 million tons the year before. The markets of West Asia, the Far East, and Africa continue to be attracting customers. Inquiries from Latin America were also received in 2021. China continues to purchase Indian goods. China purchased one million tonnes in 2020, and the orders might be repeated in 2021. Bangladesh bought roughly two million tons of rice from India and might buy more in the next years. With the demand for Indian rice imports in large quantities, rice suppliers in India are not afraid to push prices higher, supported by a tight supply and a stronger rupee, the price of Indian rice increased.
Non-basmati rice exporters forecast that exports of this type of rice in 2022 may decrease by 10%, while basmati rice exporters, especially rice suppliers in India forecast that exports of this type will decrease by 25%. The main reason is the high shipping cost. It is known that the freight rate has increased from 50 – 60 USD/ton in early 2021 to 120 – 130 USD/ton by the end of the year.
Top 5 reputable rice suppliers in India
Here are some reputable rice suppliers in India for buyers’ references. They have a lot of experience in exporting rice and have contributed significantly to the development of the Indian rice industry.
SHRI LAL MAHAL Group of Companies
In 1907, the SHRI LAL MAHAL Group of Companies was founded. The Group has grown into a multibillion-dollar corporation with operations scattered across multiple countries and a staggering turnover.
A Star Trading House is SHRI LAL MAHAL. They are one of the most important rice suppliers in India. The premium export of the SHRI LAL MAHAL Group is basmati. The Group is now one of India’s top exporters of Basmati and non-Basmati rice, with a significant part of the Basmati and non-Basmati export pie. Furthermore, they have the distinction of being the first exporter of 5000 MT of Basmati Rice from India to Europe, which occurred in 1978. They export Basmati rice to Europe, the United States, Canada, the Middle East, etc.
KRBL Limited has established itself as the main participant in the Indian rice market as well as India’s first integrated rice corporation, with over a century of industry expertise. KRBL’s product line has evolved and extended over time, pleasing clients all around the world. Its existence in a consumer-driven business necessitates the consumption of healthful, well-balanced meals. With a strong presence in India, it seeks to extend its market share while also reaching out to new international markets and becoming one of the best rice suppliers in India.
Shiv Shakti International
Shiv Shakti International is one of the leading global rice suppliers in India of premium basmati rice. They sell a variety of organic and non-organic basmati and non-basmati rice types, including 1121 basmati rice, conventional basmati, Pusa basmati, and others. They employ the greatest processing processes in cultivating pesticide-free organic rice to give healthy nutritional rice types for healthy people. They are committed to delivering exceptional quality rice to customers since their products are widely valued across the world.
Muskan Overseas is a well-established Basmati rice miller and exporter with over four decades of expertise. The company is well-known for producing, processing, distributing, and exporting a wide variety of rice across the world. The company began its adventure in 1972 when the company’s founders purchased a small rice mill and started the rice business. The Gupta family was one of the few rice suppliers in India in the early 1980s when the Indian government opened its doors to private companies. From then till now, the firm has risen to higher heights in the rice market, and it is presently India’s biggest rice exporter.
Green India Rice Millers & Exporters Pvt. Ltd
Established in 1988, experiencing more than 27 years of foundation and development, Green India Rice Millers & Exporters is one of the most reliable rice suppliers in India with a comprehensive variety of basmati and non-basmati rice. This supplier commits to fetch the best quality of basmati rice for thousands of consumers in the world.
Rice suppliers in India are increasingly gaining the trust of importers by ensuring rice quality and affordable prices. However, importers should choose reputable rice suppliers in India to order rice in bulk.
Besides, Vietnam also has many big exporters, one of which is the K-Agriculture Factory. To get a free consultation, feel free to contact us via: