The setting of new conditions signals India’s dedication to providing consistent domestic supplies and price situations.

By Vikram Marwaha

India’s rice export ecosystem is entering a new phase of change as the government strengthens food security measures to safeguard domestic availability. According to a recent report, India exported 20.1 million tonnes of rice at the value of $12.95 billion in FY 2024–25, thereby maintaining its status as the world’s biggest supplier. In fact, the policy of India and the decisions taken by it have the power to change global rice markets significantly. Still, export restrictions, changing norms, and price controls have emerged as factors that are altering the flow of trade. In addition to these rules, rice exporters are prepping to face a more regulated, closely monitored, and demand-sensitive market.

Understand why India is tightening food security rules

There are various reasons for the government’s primary concern, including food security, among them are unpredictable weather, changing yields, increasing domestic consumption, and inflation concerns. The irregular monsoons, heat waves, and changes in crops have made it necessary to manage the stocks cautiously. Apart from this, India has one of the most extensive food subsidy systems under the National Food Security Act (NFSA), which covers about 800 million people and provides grains. Hence, making sure there is enough stock for local consumption becomes not only a priority but also a challenge when the production is affected by the climate in that particular year. Consequently, the government has taken various steps, including not just the restriction of exports on the non-basmati rice but also the declaration of Minimum Export Prices (MEPs) and the conducting of stricter customs checks, all aimed at the supply of rice in the local market.

Exporters face uncertainty amid frequent policy changes

The tightening of food security rules has created uncertainty for exporters who now need to constantly adapt to new regulatory conditions. Frequent shifts between “free,” “restricted,” and “prohibited” categories disrupt shipment planning and contract timelines. Exporters also face challenges in managing working capital, as delays caused by compliance verification increase holding costs. With MEPs acting as price floors, exporters often struggle to meet competitive global prices without sacrificing margins. Additionally, export approvals have become strict now, demanding accurate support documents and compliance with sudden changes in the procedure. This situation is particularly hard on small and medium-sized exporters who do not have the financial power to hold out through delays and changing market conditions.

Global importers modify procurement plans

The stricter Indian policies have impacted not only the country’s rice but also global procurement behaviour depending on Indian rice, particularly in the regions of West Africa, the Middle East, and South-East Asia. The sudden ban on non-basmati white and broken rice exports has led the international buyers to adopt a more diversified sourcing strategy that involves the temporary shifting of suppliers to Thailand, Vietnam, Myanmar, and Pakistan, among others. Such diversification guarantees the continuous flow of imports, but it is unavoidable that the cost will also be higher, as India has always been the source of rice at competitive prices due to its scale. Balancing Domestic Requirements with Global Commitments

India’s strategy is a balancing act between ensuring food security for the population and keeping its leading status in the global rice market. India’s moves have direct impacts on the whole world due to its enormous exporting capacity. Yet, maintaining domestic equilibrium, most importantly for the economically weaker sections, continues to be the main concern. The government alters the regulations depending on the production forecasts, inflation trends, stocks of rice, and changes in global prices. This ever-shifting policy scenario means that exporters have to be ready for a change in direction every now and then as India strives to guard its domestic markets while still being a major player in international trade.

While India is fortifying its food security structure, rice merchants will have to deal with a much more controlled and strategically delicate environment. The setting of new conditions might impose difficulties in the near term; however, it also signals India’s dedication to providing consistent domestic supplies and price situations. Exporters who are on the proactive side of the curve by having a variety of products that are compliance-planning savvy and that have good partnerships in the world will be the ones to do well.

The author is Joint Managing Director, DRRK Foods

Published Date: December 1, 2025