Weekly Review of Paddy Rice (31 October - 6 November 2024)
09-Nov-2024 06:10 PM
Paddy Prices Rise Despite Increased Supply
- General Overview:
Despite a good supply of Kharif season paddy in key mandis across Punjab, Haryana, and Western Uttar Pradesh, prices of paddy saw an upward trend, rising by Rs.200-Rs.300 per quintal in several markets. This price increase was primarily driven by strong demand from rice millers and exporters.
- Price Movements:
- Delhi’s Narela Mandi: The price of 1509 hale paddy saw an increase of Rs.85, reaching Rs.3185 per quintal. Daily arrivals in Narela Mandi were around 60,000 sacks of paddy.
- Punjab: In Amritsar Mandi, paddy prices rose by Rs.50-Rs.55 per quintal, while in Tarn-Taran, the daily arrival of 60,000 sacks was recorded.
- Uttar Pradesh: In Etah, the price of Taj paddy increased by Rs.200, reaching Rs.2200 per quintal.
- Other Regions: Significant arrivals were also recorded in Gorakhpur, Aligarh, and Khair, with varying degrees of price increases across these markets.
- Factors Influencing Price Movement:
- Government Policies: The government's decision to abolish the Minimum Export Price (MAP) of Basmati rice, which had been set at $950 per tonne, had a mixed impact. While it opened up export channels, the ongoing Iran-Israel conflict is expected to impact exports to Central Asia.
- Demand-Supply Dynamics: Despite the heavy arrivals, rice millers and exporters continue to drive demand, keeping prices elevated in some mandis.
Rice Prices: Mixed Trends
- Fluctuations in Rice Prices:
- Vishnubhog Rice in Bhatwada: Prices increased by Rs.100 to Rs.7000 per quintal.
- Raichur (Karnataka): Prices for certain varieties saw an uptick of Rs.100-Rs.200 per quintal.
- 1718 Rice (Steam and Sela Varieties): In several markets, particularly in Raichur, the prices of 1718 Steam rice fell by Rs.950 to Rs.6400-Rs.6450 per quintal, and the Sela variety dropped by Rs.750 to Rs.6600-Rs.6650 per quintal.
- Sugandha Rice (Rajasthan): Sugandha rice prices in Bundi saw a rise of Rs.300 per quintal, whereas prices for 1509 rice declined by Rs.200.
- Price Dynamics in Delhi’s Naya Bazar:
- Prices for various rice varieties, including 1509 Steam, Sugandha Sela, and Sugandha Steam, saw an increase of Rs.200 per quintal.
Conclusion:
The overall trend during the week from 31 October to 6 November shows that paddy prices have been rising, especially in major mandis of Punjab, Haryana, and Uttar Pradesh. This is attributed to robust demand from rice millers and exporters, even as supply levels remain substantial. The rice market, however, experienced mixed price movements, with some varieties seeing price increases while others, like the 1718 Steam and Sela varieties, saw price reductions. Export conditions, particularly in the wake of geopolitical developments like the Iran-Israel conflict, may continue to impact both paddy and rice prices in the coming weeks.