New Delhi. Weak demand for rice in the international market is forcing Indian exporters to lower the prices of their products. Intense competition is being observed among India and other major supplier countries in the global export market for non-basmati white and parboiled rice. Similarly, the imposition of a high 50 percent tariff in the US and payment issues in Iran are affecting basmati rice exports. As a result, the activity of millers, processors, and exporters in purchasing paddy in domestic markets has decreased.

During the week of January 10-16, in Delhi's Narela market, despite a daily arrival of 10,000-20,000 bags of paddy, low trading activity caused the price of 1509 Combine variety to fall by Rs. 70 to Rs. 3400 per quintal.  In the Najafgarh market, daily arrivals of paddy ranged between 1000-3000 bags.

In Chhattisgarh's Bhatapara and Rajim markets, the combined arrival of paddy was recorded between 4500-5000 bags. Prices were slightly higher in Rajim, where mainly A-grade paddy is supplied.

There were no or negligible arrivals of paddy in the markets of Punjab and Haryana, so no change in prices was observed. However, normal arrivals of basmati paddy were seen in important markets of Uttar Pradesh – Etah, Mainpuri, Jahangirabad, Khair, Aligarh, and Shahjahanpur – but due to low demand, prices remained soft.

As far as rice is concerned, prices remained stable or showed only minor fluctuations during the week under review. In Amritsar, the prices of 1509 Sella and 1718 Steam rice increased by ₹150, reaching ₹6550/6600 per quintal and ₹7350/7400 per quintal respectively. However, the price of 1509 Steam rice fell by ₹100 to ₹7200/7300 per quintal.

In Rajasthan's Bundi mandi, rice prices rose by ₹100-200 per quintal due to strong demand. Similarly, prices were weak in Haryana's benchmark Karnal mandi. It is understood that there is a possibility of good demand for Basmati rice from West Asia, the Middle East, and the Gulf region during Ramadan, while African countries may show good interest in purchasing general category non-Basmati rice.