Rice Prices Drop Sharply as Post-Festive Demand Weakens

04-Nov-2025 06:18 PM

New Delhi. The national festival season ended shortly after Diwali, leading to a weakening of rice demand. Meanwhile, the beginning of harvesting the new Kharif paddy crop increased the supply and availability of rice in the market.

This has put pressure on rice prices, with prices of general non-basmati rice falling by 6 percent and prices of specialty rice varieties like Govindbhog falling by up to 30 percent.

This year, the area under rice cultivation in the Kharif season jumped to a new record high of 44.1 million hectares, and heavy southwest monsoon rains have favored crop health. This is expected to boost rice yields.

Basmati rice prices have also softened, primarily because high customs duties are impacting exports to the United States. To address this shortfall, Indian exporters are attempting to attract buyers to new markets like Japan and Indonesia to increase shipments.

According to a leading trade analyst, the price of non-basmati rice, such as Swarna, has fallen from ₹36 per kg to ₹33 per kg. Mini-cotton rice prices fluctuated during the festive season, but have now stabilized.

Rice prices are unlikely to rise significantly for the next three to four months. Markets are receiving abundant paddy supplies, and millers and processors are purchasing it at bargain prices.

Prices of specialty rice varieties, such as Govindbhoj, are experiencing a sharp decline. A fortnight ago, its price peaked at ₹220 per kg, but has now fallen by about 36 percent to ₹140 per kg. It is expected to fall further to ₹100 per kg soon.

The price of 1509 basmati rice has also fallen from ₹85 per kg to ₹80 per kg. This is expected to provide some relief to Indian consumers during the Lagnasara season, though demand is expected to pick up soon.