India’s rice industry targets higher-value markets beyond raw grain
Indian rice processors are assessing opportunities in noodles, bran oil, protein, starch and rice-husk products. An IREF-EY study due at BIRC 2026 will weigh demand, margins, investment needs and export potential.
Industry looks beyond bulk rice exports
India’s rice industry is exploring how to earn more from each tonne of grain by expanding into processed foods, specialised ingredients and industrial materials. The products under consideration include rice noodles, bran oil, protein, flour, functional starches and materials made from rice husks, according to The Hindu BusinessLine.
The Bharat International Rice Conference 2026, scheduled for Oct. 23-25 in New Delhi, will examine these opportunities in a session titled “Beyond Raw Rice: The Next Billion-Dollar Opportunity”. The discussion will culminate in an assessment by the Indian Rice Exporters’ Federation and EY. Organisers said the study will compare market demand, achievable margins, processing yields, investment requirements, market access and export potential.
The analysis is intended to separate expanding global markets from businesses that Indian companies can profitably build. It will consider the share of growth that domestic processors could realistically capture and identify potential buyers, partnerships and pilot projects. The final announcement is expected to name the products with the strongest commercial potential and outline possible investment routes and target markets.
Noodles, bran oil and protein offer scale
Several rice-derived food markets are forecast to expand through the end of the decade. Grand View Research projects that the global rice-noodle market will grow from $6.4 billion in 2024 to $11 billion by 2030. The rice-bran-oil market is forecast to rise from $4.8 billion in 2023 to $6.3 billion by 2030.
India appears to have substantial unused capacity in bran oil. A 2024 NITI Aayog report estimated potential production at 1.9 million tonnes, including about 850,000 tonnes of untapped potential. Capturing more of that volume would require processors to secure bran quickly after milling and develop the extraction, refining and distribution infrastructure needed for edible oil.
Specialised ingredients form another possible growth channel. Grand View Research expects the global rice-protein market to increase from $168.5 million in 2023 to $281.4 million by 2030. BIRC will consider rice protein alongside flour and functional starches, focusing on processing requirements, customer specifications and whether production can be commercially viable.
Rice husks create an industrial opportunity
Value creation could also come from residues that have traditionally carried less value. The global market for silica made from rice-husk ash is projected to more than double from about $640.6 million in 2025 to $1.41 billion by 2033, according to Grand View Research. Rubber and tyres represented about 40% of market revenue in 2025. Goodyear said that year that it was using silica derived from waste rice-husk ash in its European truck-racing tyres.
The conference has grouped the opportunities into three routes. “Better Product” covers premium and speciality rice; “Better Consumer Offering” includes noodles, snacks and ready-to-cook or ready-to-eat foods; and “Better Utilisation” includes bran oil, flour, protein, starch, husk products and bioenergy. Rice-derived beverages such as sake and ethanol will also be discussed. Japanese sake exports reached ¥45.9 billion in 2025, about 6% higher than a year earlier, according to the Japan Sake and Shochu Makers Association.
Rajeev Setia, President, Basmati, at IREF, said the objective was not simply to export more tonnes but to obtain more value from each tonne. The commercial routes will differ for millers, exporters and ingredient manufacturers. For processors, the central question is whether access to raw material, technology and qualified buyers can support margins after the required capital investment.
