Weekly Review-Paddy-Rice
Paddy-Rice prices strengthened due to liberal export policy of the government
Weekly Review – Paddy and Rice Prices (7-13 November 2024)
Key Highlights:
- Paddy-Rice Prices Strong: The domestic market for paddy-rice remained strong, buoyed by the Central Government’s liberal export policy and the ongoing harvest of the Kharif season.
- Export Policies Driving Demand: The government’s decision to lift the minimum export price (MAP) for Basmati rice and make non-Basmati Sela rice duty-free is expected to significantly boost rice exports. This has led to heightened demand from traders, rice millers, and exporters.
- Government Procurement: Government procurement of paddy continues at full scale, particularly in major producing states like Punjab, Haryana, and Uttar Pradesh.
Market Insights:
Delhi: In Delhi's Narela Mandi, the price of 1121 paddy increased by Rs 100, while 1509 combine saw a Rs 100 dip. Prices in Najafgarh Mandi fluctuated by Rs 50-60. The Vishnubhog paddy in Bhatpara (Chhattisgarh) surged by Rs 300, and Mahamaya paddy in Rajim jumped by Rs 450 per quintal. In Amritsar, the price of 1718 paddy saw a significant rise of Rs 350, reaching Rs 3500-3700 per quintal.
Rice Prices: The price of Vishnubhog rice in Bhatpara increased by Rs 200 to Rs 7300 per quintal, and 1509 steam rice in Amritsar rose by Rs 200 to Rs 6600-6650 per quintal. In Karnal (Haryana), the price of 1509 Sela rice climbed by Rs 200, while steam rice prices went up by Rs 300. 1718 steam rice saw a notable Rs 700 rise, reaching Rs 7200-7300 per quintal, driven by strong export demand.
Conclusion: The export-driven demand and ongoing government procurement activities have created an upward trend in paddy and rice prices across multiple states. The policy changes related to exports, particularly the removal of the minimum export price and the duty-free status of non-Basmati Sela rice, are expected to maintain or further increase this market strength.