India Rice Milling market projected to hit USD 344.78 Billion by 2035 at 3.72% CAGR
India’s rice milling market, valued at USD 239.28 B in 2025, is projected to reach USD 344.78 B by 2035 (3.72% CAGR). Growth is driven by modernization, automation, rising packaged rice demand, stronger exports, advanced milling technologies, sustainability initiatives, fortified rice, and government-backed investments across major rice-producing states.
According to a comprehensive research report by Market Research Future (MRFR), the India Rice Milling Market Size was estimated at 230.7 USD Billion in 2024. The India Rice Milling industry is projected to grow from 239.28 USD Billion in 2025 to 344.78 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 3.72% during the forecast period 2025 – 2035.
The India Rice Milling Market is one of the most vital components of the nation’s agri-processing sector, driven by increasing demand for processed and packaged rice, modernization of milling infrastructure, and rising export activities. India is among the world’s largest producers and consumers of rice, and the milling industry plays a crucial role in supporting domestic food security and global trade. Over the years, the market has been evolving with the adoption of advanced milling technologies, automation, and quality-improving processes that cater to both domestic and international standards. As urbanization and packaged food consumption rise, the rice milling sector has been undergoing significant transformation to meet the growing expectations of consumers and regulatory bodies.
The expansion of modern rice mills across India reflects increasing investments, government support schemes, and higher emphasis on reducing post-harvest losses. Traditional milling systems are gradually being replaced with automated, high-capacity mills equipped with technologies for polishing, grading, de-husking, and quality analysis. These advancements are helping stakeholders improve productivity, rice yield, and export competitiveness. With continuous shifts in consumer behavior, technology adoption, and government-led modernization programs, the India Rice Milling Market is set for sustained growth in the coming years.
The market’s growth is further driven by rising consumption of premium rice varieties, including basmati and non-basmati segments. Export demand from Middle Eastern, African, and European markets has strengthened the need for highly efficient milling systems capable of delivering consistent quality and ensuring compliance with global food safety norms. Domestic demand for packaged and branded rice has also increased due to rising incomes and improved retail penetration. As a result, rice millers are investing heavily in packaging machinery, advanced polishing equipment, and automated quality-check technologies.
The India Rice Milling Market is supported by a range of strong growth drivers. One of the major contributors is the steady rise in rice production, supported by favorable climatic conditions, extensive agricultural land, and government subsidies promoting rice cultivation. Additionally, the increasing focus on reducing food wastage has prompted the adoption of modern milling technologies that minimize grain breakage, improve output quality, and enhance overall efficiency. Growing export opportunities continue to act as a major catalyst for market expansion, with India being a global leader in rice shipments, especially basmati rice.
Innovation remains at the heart of the India Rice Milling Market’s growth trajectory. Automated milling systems with real-time monitoring, sensor-based quality assessment, and AI-driven process optimization are increasingly being adopted. Technologies like vertical rice whiteners, color sorters, rubber roll hullers, and precision graders have improved both yield and operational efficiency. These innovations help millers cater to the rising demand for consistent quality and contamination-free rice. The adoption of IoT-based monitoring systems further enhances supply-chain transparency, reduces operational errors, and ensures traceability.
Processing trends across the market indicate a strong transition from manual mills to automated and semi-automated systems. The growing interest in fortified rice, driven by national nutrition programs, is also influencing processing methods. Many mills are adopting technologies for rice fortification to meet the rising demand from government-led distribution schemes. Sustainable milling practices, including energy-efficient dryers, water-saving cleaning systems, and waste-to-energy rice husk utilization, are becoming popular as environmental awareness rises. These trends align with global sustainability goals and contribute to reduced operational costs.
The India Rice Milling Market is segmented based on equipment type, capacity, and application. Equipment segments include pre-cleaners, paddy separators, de-huskers, polishers, and graders. Small and medium-scale rice mills form a major part of the market, particularly in rural and semi-urban regions, while large integrated mills dominate export-centric production. Applications include commercial milling for export, domestic consumption, food processing industries, and fortified rice production. This segmentation reflects the diverse needs of India’s agricultural and industrial ecosystem.
Regionally, states like Punjab, Haryana, Uttar Pradesh, West Bengal, and Andhra Pradesh dominate the rice milling landscape due to large-scale rice cultivation and established agricultural infrastructure. Southern states like Tamil Nadu and Karnataka are emerging as strong markets due to the rise of packaged rice consumption and increasing modernization of mills. Eastern regions, particularly Odisha and Bihar, are witnessing modernization initiatives driven by government support and private investments.
The India Rice Milling Market features a mix of domestic and global players offering a wide range of milling technologies and equipment. Leading companies focus on R&D, automation, and value-added services such as installation, maintenance, and digital monitoring solutions. The market is also witnessing partnerships, strategic expansions, and technological collaborations aimed at improving efficiency, reducing downtime, and enhancing quality output. As competition intensifies, companies are prioritizing affordability, reliability, and innovation to gain a competitive edge.
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Source : Ukr Agro Consult
