Mixed Trend Expected in Rice Market

New Delhi. Kharif rice production is likely to decline due to a reduction of approximately 3.6 percent in paddy acreage and deficient monsoon rainfall. This could create scope for a rise in prices. On the other hand, the Food Corporation of India (FCI) holds massive rice stocks, which are set to increase further as the arrival of new paddy and government procurement have commenced. Should prices surge, the government would be well-positioned to intervene effectively in the market.

However, it is worth noting that procurement for the central buffer stock primarily consists of common-grade non-basmati paddy and rice, with very little procurement of 'A' grade or fine-quality rice. Government procurement of Basmati paddy generally does not take place, as no Minimum Support Price (MSP) is fixed for it.

Compared to last year, there has been some decline in the acreage of fine-quality non-basmati paddy as well as Basmati paddy this year. While Basmati acreage remained largely stable in Punjab, it saw a slight decrease in Haryana. Reports indicate a reduction in the cultivation area for super-fine and fine-grade paddy in Telangana, Karnataka, and Chhattisgarh.