Domestic market price of rice increased by 10-15 percent due to increase in global demand

09-Oct-2024 04:31 PM

New Delhi. After the Central Government made the export policy liberal, simple and free from control, the domestic market price of rice has increased by 10-15 percent because its global demand has increased significantly, which was already expected.

The interesting fact is that the international market price of rice has fallen by almost the same amount. Last month, the Central Government abolished the trade ban on the export of non-Basmati white rice and in return implemented the minimum export price (MAP) at the rate of $ 490 per ton.

On the other hand, the export duty on Sela rice was reduced from 20 percent to 10 percent and the MAP of $ 950 per ton imposed on Basmati rice was removed.

As a result, the way for increase in rice export from India has been cleared. On the other hand, the countries of Asia and Africa, which were getting restless to buy Indian white rice, are now getting a good opportunity to show their enthusiasm.

Preparations for harvesting of the new crop of paddy have begun and soon new rice will also start arriving in the market.

There is sufficient stock of rice in government godowns and it is expected to increase continuously in the coming months, hence there is no threat to national food security but the government policies have started having a psychological effect on the prices of rice in the open market.

Exporters are contracting to export white rice in large quantities and hence the domestic market price has started rising.

Although there has been an increase in the area under paddy production in the current procurement season and there has been support from abundant monsoon rains,

due to which better production of rice is expected but it is difficult to put pressure on the prices until the arrival of new goods starts in full swing. African countries have started buying white rice.