Pigmented rice cultivars are becoming more popular because of their phenolic and nutritional qualities when compared to white rice cultivars. Rice with a red bran layer is called red rice. It is native to Asian countries and a well-known cultivar of mid and high hills of South Western Himalayas in Himachal Pradesh, Jammu and Kashmir, and some regions of Uttrakhand. Red rice is commonly used in Himachal Pradesh as Bhaat, kheer, Meetha Bhaat, Chilrhu or Lushke. In several parts of the state, it is also used for making beverages. Lugrhi, a brewed drink prepared from red rice, is famous in the Kullu district. The bran layer of red rice contain polyphenols such as phenolic acid, anthocyanin, and proanthocyanidins, and possesses antioxidant activities. Red rice is a great source of protein, zinc (Zn), and iron (Fe) than white rice. The decoction (strained liquor) made from red rice and lassi is used to cure dysentery in human beings. The rice water that is separated after cooking rice is fed to pregnant and lactating women as a nutritional food supplement. The demand for nutraceutical-rich foods is rising day by day. Keeping in view, the rising demand and shrinking area under the red rice, a concrete policy, and marketing approach is urgently required to motivate farmers and boost the cultivation of rice in its traditional areas of cultivation.