Indian Exporters Target New Markets in APAC, Mideast
Indian rice exporters are actively diversifying into emerging markets amid rising demand. Key targets include Iraq, Indonesia, and Saudi Arabia, highlighting a competitive push into regions where Thai exporters are also seeking to strengthen partnerships.
India's aggressive export strategy follows the lifting of its ban on non-basmati white rice and a reduction in export duties on parboiled rice, which had been in place since 2022-23. This policy reversal is part of a broader goal to more than double the country's agricultural exports to $100 billion by 2030. The return of Indian supply has triggered a sharp decline in global rice prices, with the benchmark for Thai white rice falling from $669 per metric tonne in January 2024 to $405. Overall, global prices have dropped by as much as 35% since India fully re-entered the market, creating significant margin pressure on competing exporters. This has directly impacted Thailand, whose rice exports fell 24% in the 2024-25 period. Compounding the issue, a strengthening Thai Baht eroded price competitiveness in early 2026, with Thai rice exports for January 2026 falling 17.5% year-on-year. Meanwhile, Vietnam is strategically shifting its focus from volume to value, prioritizing high-quality, organic, and low-emission rice to penetrate premium markets like the EU and Japan. While Vietnam's export volumes have remained high, average prices and revenues saw a sharp decline in 2025 due to the global oversupply. The Indian Rice Exporters Federation (IREF) is targeting 26 new international markets, including Japan, Mexico, and China, aiming to capture a share of trade worth ₹1.8 trillion (approx. $21.6 billion USD). Special focus is also being placed on fortified rice kernels for export to Latin America and Southeast Asia. Despite the intense price competition in the standard white rice segment, Thai exporters have maintained robust demand and price stability for premium parboiled and fragrant rice varieties. Key markets for these higher-value segments include the Middle East, Africa, and other parts of Asia. The global rice market is currently facing a supply glut, with production in 2024 hitting 541 million tons. Forecasters anticipate prices will continue to fall through the end of 2025 before potentially stabilizing in 2026 at levels not seen in a decade.
