Strong Paddy Arrivals in Major Markets; Weak Demand for Rice
New Delhi: Heavy arrivals of paddy have begun in the major markets of top Basmati-producing states like Punjab, Haryana, and Uttar Pradesh. Similarly, good supplies of paddy are being reported in Chhattisgarh and Delhi.
Production
Although the area under Basmati paddy cultivation is expected to decline by approximately one lakh hectares during the current Kharif season compared to last year, large producers and stockists have started offloading their old stocks into the markets in anticipation of the imminent, robust harvest of the new crop.
Exports
On the other hand, Indian Basmati rice exporters are facing difficulties due to disruptions in shipping movements via the Strait of Hormuz; consequently, millers, processors, and exporters are exercising caution regarding paddy procurement in the markets.
Arrivals
During the week of September 12–18, daily paddy arrivals increased, reaching 20,000 bags in Narela (Delhi); 5,000–6,000 bags in Bhatapara (Chhattisgarh); 4,000–5,000 bags in Rajim; 1.50 lakh bags in Amritsar (Punjab); 90,000 bags in Tarn Taran; 1,500 bags in Fazilka; 800 bags in Etah (Uttar Pradesh); 15,000 bags in Jahangirabad; 10,000 bags in Shahjahanpur; 35,000 bags in Aligarh; 40,000 bags in Khair; 35,000 bags in Tarawari (Haryana); 1,500 bags each in Tohana and Gohana; and 1,200 bags in Palwal. Additionally, minor arrivals have commenced in some other markets and are likely to increase in the near future.
Rice
As for rice, trading activity remained somewhat sluggish during the week under review. As a result, prices dropped by ₹100–200 per quintal. While the export performance of non-basmati rice remains robust, basmati rice shipments have been less encouraging by comparison.
Prices
Rice prices softened in Amritsar, whereas relative stability was observed at Delhi's Naya Bazar. The market in Uttarakhand's Nagar Mandi also remained subdued. Prices held steady at Haryana's benchmark Karnal market due to a lack of trading activity, while the price of Sugandha rice fell by ₹300 per quintal at the Bundi market in Rajasthan.
