India 1st, Thailand 2nd…, list where India’s dominance leaves US and China far behind as it leads global market in…

Recently, India removed all restrictions on rice exports, which had an immediate impact on the global market. As a result, rice prices in the international market dropped.

Rice is a major commodity in global trade, and India holds the top spot as the world’s largest rice exporter. Even a small policy shift by India can significantly impact international rice prices. Following India, the other major rice-exporting countries include Thailand, Vietnam, Pakistan, China, and the United States.

In 2022, India led the global market by exporting 22 million tons of rice, valued at approximately USD 1.07 billion. Thailand is renowned for its premium-quality Jasmine rice, while Vietnam is also a key player in the rice export business. Pakistan is famous for its Basmati rice exports, and the US contributes to the global supply as well.

India’s influence on the rice trade is so significant that its decisions directly impact global prices. A recent example of this was seen when India’s export restrictions caused fluctuations in the international market.

Top 10 Rice-Exporting Countries in 2022

Here are the leading rice-exporting nations based on their export volume and value in 2022:

India dominates the global rice trade by a significant margin, exporting nearly three times more rice than Thailand, its closest competitor.  Countries like Vietnam, Pakistan, and China also hold a strong position in the market, contributing significantly to the global rice supply.

India lifts rice export ban, shaking up global market

Recently, India removed all restrictions on rice exports, which had an immediate impact on the global market. As a result, rice prices in the international market dropped. The price of Thai white rice fell to USD 405 per ton, a sharp decline from USD 669 in January 2024. The Indian government made this decision as part of its broader plan to boost agricultural and food exports, aiming to increase farmers’ income and strengthen the economy. Over 42 per cent of India’s 1.4 billion population depends on agriculture for their livelihood.

Global competitors in rice trade

India faces competition from other major rice-exporting countries like Thailand, China, Pakistan, and the United States. With India lifting its export ban, global rice prices have dropped further, giving the country a stronger foothold in the market. The government has set an ambitious target of exporting $100 billion worth of agricultural and food products by 2030.

Why did India ban rice exports earlier?

India initially imposed export restrictions in response to the Russia-Ukraine war, which had driven up global food prices. Fearing a potential rice shortage at home, the government temporarily halted exports. Rice plays a crucial role in global grain trade, alongside wheat, maize, and soybeans.