India: Paddy Rice Market 2023

Paddy Rice Market Size in India

After four years of growth, the Indian paddy rice market decreased by -1.8% to $X in 2022. The market value increased at an average annual rate of +1.7% from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations throughout the analyzed period. Over the period under review, the market hit record highs at $X in 2021, and then fell slightly in the following year.

Paddy Rice Production in India

In value terms, paddy rice production shrank modestly to $X in 2022 estimated in export price. The total output value increased at an average annual rate of +1.5% from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations throughout the analyzed period. The growth pace was the most rapid in 2016 with an increase of 30% against the previous year. As a result, production attained the peak level of $X. From 2017 to 2022, production growth remained at a somewhat lower figure.

In 2022, the average yield of paddy rice in India declined slightly to X tons per ha, approximately equating the previous year's figure. The yield figure increased at an average annual rate of +1.2% from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2016 with an increase of 5.1%. Over the period under review, the average paddy rice yield attained the maximum level at X tons per ha in 2021, and then contracted slightly in the following year. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, approx. X ha of paddy rice were harvested in India; approximately reflecting 2021. In general, the harvested area, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 with an increase of 3.2%. Over the period under review, the harvested area dedicated to paddy rice production reached the maximum at X ha in 2021, and then declined modestly in the following year.

Paddy Rice Exports

Exports from India

After five years of growth, overseas shipments of paddy rice decreased by -33.3% to X tons in 2022. In general, exports, however, enjoyed prominent growth. The growth pace was the most rapid in 2020 with an increase of 68% against the previous year. The exports peaked at X tons in 2021, and then dropped remarkably in the following year.

In value terms, paddy rice exports fell sharply to $X in 2022. Over the period under review, exports, however, continue to indicate a resilient expansion. The most prominent rate of growth was recorded in 2021 with an increase of 54% against the previous year. As a result, the exports reached the peak of $X, and then declined significantly in the following year.

Exports by Country

Nepal (X tons) was the main destination for paddy rice exports from India, with a 97% share of total exports. It was followed by the Philippines (X tons), with a 2.1% share of total exports.

From 2012 to 2022, the average annual growth rate of volume to Nepal amounted to +10.3%.

In value terms, Nepal ($X) remains the key foreign market for paddy rice exports from India, comprising 77% of total exports. The second position in the ranking was held by the Philippines ($X), with a 17% share of total exports.

From 2012 to 2022, the average annual rate of growth in terms of value to Nepal amounted to +12.7%.

Export Prices by Country

In 2022, the average paddy rice export price amounted to $X per ton, surging by 7.6% against the previous year. In general, the export price, however, showed a relatively flat trend pattern. The pace of growth was the most pronounced in 2016 when the average export price increased by 24%. As a result, the export price reached the peak level of $X per ton. From 2017 to 2022, the average export prices failed to regain momentum.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was the Philippines ($X per ton), while the average price for exports to Nepal amounted to $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to the Philippines (+3.2%).

Paddy Rice Imports

Imports into India

In 2022, imports of paddy rice into India declined notably to X tons, which is down by -99.3% against 2021 figures. Over the period under review, imports, however, recorded a strong expansion. The most prominent rate of growth was recorded in 2014 when imports increased by 10,487%. Over the period under review, imports hit record highs at X tons in 2021, and then contracted markedly in the following year.

In value terms, paddy rice imports declined notably to $X in 2022. Overall, imports, however, showed a buoyant increase. The most prominent rate of growth was recorded in 2021 when imports increased by 13,412%. As a result, imports reached the peak of $X, and then reduced dramatically in the following year.

Imports by Country

In 2022, the Philippines (X tons) constituted the largest supplier of paddy rice to India, with a 75% share of total imports. Moreover, paddy rice imports from the Philippines exceeded the figures recorded by the second-largest supplier, the United States (X kg), fourfold. Indonesia (X kg) ranked third in terms of total imports with a 3.6% share.

From 2012 to 2022, the average annual growth rate of volume from the Philippines totaled +136.2%. The remaining supplying countries recorded the following average annual rates of imports growth: the United States (-11.0% per year) and Indonesia (0.0% per year).

In value terms, the Philippines ($X), the United States ($X) and Indonesia ($X) appeared to be the largest paddy rice suppliers to India, together accounting for 86% of total imports.

The Philippines, with a CAGR of +201.9%, recorded the highest rates of growth with regard to the value of imports, in terms of the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average paddy rice import price stood at $X per ton in 2022, surging by 153% against the previous year. In general, the import price saw a buoyant increase. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Brazil ($X per ton), while the price for the Philippines ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Brazil (+153.8%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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