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Rice Sector Faces Logistics Test as Exports Hold Firm at Summit

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News Analysis IndiaReporter
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October 24, 2026
12:31 PM
Rice Sector Faces Logistics Test as Exports Hold Firm at Summit

New Delhi, October 24: Industry experts at the India International Rice Conference 2026 said the country's rice sector is facing a serious logistics test, even as exports remain steady and India's importance in global food security keeps rising.

Speakers from government bodies, exporter associations, industry service providers, and testing institutions attended the conference in the national capital. Many described it as the largest and most influential gathering the rice sector has seen so far.

Tarun Bajaj, General Manager at APEDA under the Ministry of Commerce, said India holds around 40 percent of the global rice export market and is widely recognized as the world's leading supplier. He stressed that the country needs a forum where farmers, exporters, and consumers can jointly examine problems and solutions.

According to Bajaj, the disruption of key shipping routes has created the most serious problem for the sector. Tensions in the Strait of Hormuz and the Red Sea have affected vessel traffic, extended transit times, raised insurance costs, and sharply increased freight charges. Joint efforts by central and state authorities and industry players are nevertheless keeping exports on track.

He also said rice is a matter of food security for several nations, and that India is working to meet its own needs while safeguarding the interests of importing countries.

Dr. Rajiv Kumar, Executive Director of the Rice Exporters Association, said India's global position is very strong, as the combined share of the next three largest exporters is still smaller than India's. He warned, however, that logistics cost is the key constraint.

Kumar pointed out that rival exporters such as Thailand and Vietnam use waterways more extensively, while India's transport is largely road-based, adding to costs. He recommended a stronger focus on high-demand rice varieties so that exporters can obtain better prices, and noted that government backing remains steady.

Rajesh Paharia Jain, Chief Manager at Krishco Agri, said the event had expanded in scope and participation compared with the previous year. He said the value chain, from sack manufacturers and surveyors to customs house agents, farmers, and exporters, was represented on one platform.

Jain also said that despite weather-related concerns and a possible dip in crop output, India has an adequate buffer stock of approximately 5.5 to 6 crore tonnes with the Food Corporation of India, keeping the situation secure. He called for interest support and additional incentives for the export industry.

Speakers from technology and testing sectors also underlined that accurate information, transparent pricing, and shared global standards can reduce trade friction and rejections.

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