Indian rice industry value-addition and technology shifts

The Indian Rice Exporters’ Federation (IREF) is driving a strategic shift in the rice industry, moving from high-volume grain exports toward maximizing economic value through specialized processing and improved milling efficiency.

Industry assessments identify significant growth potential in value-added products. Projections suggest the global rice-noodle market could reach $11 billion by 2030, the rice-bran-oil market $6.3 billion, and the rice-protein market could see approximately 67 percent growth by the same year. Other opportunities include convenience foods and husk-derived industrial materials.

To improve milling margins, the IREF has emphasized increasing rice recovery rates. For a mill processing 30,000 tonnes of paddy, shifting just one percentage point from broken grain to whole grain could potentially add Rs 60 lakh in annual sales. At the Bharat International Rice Conference (BIRC) 2026 in New Delhi, industry leaders and government officials discussed integrating technology, such as artificial intelligence, to automate operations and improve efficiency.

Food Processing Industries Minister Chirag Paswan noted that after achieving production abundance, the priority is strengthening the value chain through traceability, sustainability, and branding. While Basmati rice yields are expected to increase by 5% to 10% due to favorable monsoons, experts also highlighted the need to reduce export rejections by improving pesticide residue management and moisture control to meet international safety regulations. Despite geopolitical tensions in the Red Sea and Middle East, India remains a major player, accounting for approximately 40% of the global rice trade.