Abundant Rice Supply Affects Prices

25-Dec-2025 07:44 PM

New Delhi. In the past Kharif season, the area under paddy cultivation surged to a new record level of 441 lakh hectares, resulting in excellent production. However, production could have been even higher if not for the severe flooding caused by extremely heavy rainfall in some areas during the southwest monsoon season.

Due to the excellent production and heavy arrivals at procurement centers, government procurement of paddy is also progressing rapidly. As a result, the stock of paddy and rice in the central pool is increasing rapidly.

The supply and availability of rice in the domestic market remain largely smooth, leading to price stability.

This is providing relief to exporters because, firstly, they are getting sufficient stock of rice at cheaper prices for export purposes, and secondly, the rupee exchange rate has also fallen significantly, making it easier for traders to keep their rice export offer prices at competitive levels.

The area under Rabi paddy cultivation is also ahead of last year, which could lead to an increase in production.

The global rice export market is gradually returning to normal, but despite better export performance, a significant increase in domestic rice prices is not expected due to the availability of sufficient stock.