Market Trends of Rice Milling Machinery Industry
Rising Area Under Rice Cultivation
- Rice serves as the primary staple for over half of the global population, with Asia, Sub-Saharan Africa, and South America leading in consumption. Asia, home to major producers like China and India, dominates global rice production. The Food and Agriculture Organization (FAO) reported that in 2022, India's harvested rice area expanded to 46.4 million hectares, up from 46.2 million hectares in 2021. This increase in cultivated area boosted production from 194.2 million metric tons in 2021 to 196.2 million metric tons in 2022, subsequently driving growth in the rice mill machine market.
- In Africa, countries are increasingly adopting rice mills to process domestic and imported rice. FAO data indicated that in 2022, Nigeria's rice cultivation area reached 4.5 million hectares, marking a 6% increase from 4.3 million hectares in the previous year. This expanded cultivation area contributed to a production rise from 8.3 million metric tons in 2021 to 8.5 million metric tons in 2022. As of 2022, Nigeria boasted a total milling capacity of 3 million metric tons, distributed across 68 rice mills nationwide. This growth could be largely attributed to the Central Bank of Nigeria's Anchor Borrowers’ Programme (ABP), which supported rice cultivation, processing, and related value chain activities.
- The surging demand for premium rice, coupled with the adoption of modern cultivation techniques and high-yield varieties, offers a lucrative opportunity for stakeholders in the market. These stakeholders can introduce advanced machinery that enhances milling efficiency, curtails labor costs, and elevates the final product's quality.
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Asia-Pacific Dominates the Market
- Rice, wheat, and corn are the major staple crops worldwide. Rice is a major staple crop among the three, helping more than half the global population meet its daily calorie requirements. More than 90% of the world's rice is grown in Asia, principally in China, India, Indonesia, and Bangladesh, with smaller amounts grown in Japan, Pakistan, and various Southeast Asian nations. According to the ITC Trade Map, in 2023, semi or wholly-milled rice exported from India amounted to 16.3 million metric tons, followed by Thailand with 7.6 million metric tons, Pakistan with 3.2 million metric tons, and China with 1.4 million metric tons. The export demand for milled rice is boosting the market’s growth.
- Integrated crop management (ICM) approaches for rice crops involve location-specific technologies combined with effective institutional support from governments, research institutions, and extension services. This approach aims to optimize the use of available resources, minimize the impact of pests and diseases, and improve the overall productivity and sustainability of rice farming. Using ICM approaches, farmers can bridge the yield gap and increase their rice production. Governments can support farmers by providing access to input and village credit supplies and strengthening research and extension linkages to disseminate new knowledge and technologies. According to FAO, rice consumption in Asia will increase by more than 51% by 2025. This increase in demand for rice due to the population increase in the region will drive the rice milling market during the forecast period.
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