March 1, 2023 | 6 min read

How big is the rice milling industry in India?

Are you a fan of rice? If so, you'll be pleased to learn that India's rice milling sector is a lucrative one that is always expanding. It is not surprising that rice occupies a significant position in the everyday diet of millions of Indians given their rich cultural heritage, lengthy history, and scrumptious cuisine.

In this article, we’ll take a look at the profitable Indian rice milling market and find out what's driving its growth. So, let’s get started.

First of all, take a look at the numbers. The market is expected to see a rise in revenue in the upcoming years, with a CAGR of 3.1% from 2022 to 2027 and a growth rate of 3.51% from 2022 to 2030. That means the market is estimated to reach an impressive USD 392.6 million, contributing greatly to India’s economic growth. There are more than 20,000 rice mills in India. West Bengal has the highest rice production in India.

Another factor contributing to the industry’s growth is an ever-increasing demand for rice consumption and production. Rice is a daily part of many households, not only in India but all over the world. People expect high-quality rice to be readily available in the market, and this process is usually obtained through rice milling. The use of rice milling in India helps obtain white rice from paddy fields by removing its husk and bran. The growth of the agriculture industry, industrialization, and technological advancement have provided a platform for many farmers and businesses to process paddy into rice, enabling them to get more profits.

Another driving force behind the Indian rice milling market is the focus on upgrading rice processing facilities. By removing the husk, bran, and germ layers through milling, the shelf life of rice is greatly extended. This means that milled rice can be stored for a longer period without going bad, and it also reduces the cooking time compared to other rice varieties. The importance of rice milling equipment in preserving the quality of rice and reducing spoilage is clear, contributing to the growth of the market.

But wait, there's more. The milling process can also release essential nutrients such as fibre, vitamins, and minerals. Milled rice is primarily a source of carbohydrates and proteins, whereas unmilled rice, like brown rice, is a source of dietary fibre and includes vitamins and minerals. The higher nutritional range of unmilled rice may impact the demand for milled rice among customers, leading to a restraint in the market's growth, although that is highly unlikely.

Another critical factor in the Indian Rice milling story is the Food Security Act passed by the Government of India in 2013. This mandates the government to maintain a regular supply of processed rice and distribute them to the poor and needy population of India via the Public Distribution System(PDS) or the Ration Shops. This means that there will be huge demand for processed rice in our country for the foreseeable future.

So rest assured, the Indian rice milling industry is poised for growth in the future, driven by the increasing demand for rice production and consumption and the growing focus on upgrading rice processing facilities. Despite some factors that may impact the demand for milled rice, the market is expected to reach an impressive USD 392.6 million. So, the next time you enjoy a plate of delicious rice, remember the hard work and technology that go into producing it!