New Delhi. Supply of Basmati and 'A' grade paddy has started to weaken in the major markets of the key producing states, while domestic and export demand for rice is expected to increase in the coming period. Demand for Basmati rice may pick up in Muslim-majority countries during Ramadan. While common varieties of paddy are being procured by the Food Corporation of India (FCI) and its associated state agencies, Basmati paddy is mainly purchased by millers, processors, and traders/exporters. Reports indicate a decline in Basmati paddy production in Punjab.

During the week of December 20-26, daily arrivals of paddy in Delhi's Narela market were 20,000-30,000 bags and in Najafgarh market 4,000-5,000 bags. Prices increased by Rs. 150 to Rs. 300 per quintal. Similarly, 1,000-2,000 bags of paddy are arriving daily in Bhatapara and Rajim markets of Chhattisgarh. Prices there also increased by Rs. 100-200 per quintal.

In Amritsar market of Punjab, paddy arrivals have decreased significantly compared to the peak levels of October-November, and with limited trading, no significant price fluctuations are being observed. The situation is similar in Fazilka, but in Tarn Taran, with daily arrivals of 5,000-6,000 bags, the price of 1121 paddy increased by Rs. 185 to Rs. 4285 per quintal.

In various markets of Uttar Pradesh – Aligarh, Etah, Mainpuri, Jahangirabad, Khair and Shahjahanpur, etc. – there was a good supply of paddy, and with better trading, prices registered a good improvement. It appears that millers, processors, and exporters are trying to increase their paddy stocks keeping in mind future requirements.

However, the price of rice remains soft or stable. Although there has been no decline in domestic and export demand, the significant depreciation of the rupee against the dollar is helping exporters keep their rice export offer prices at competitive levels. Rice prices in Bhatpara registered a decline of ₹100 to ₹500 per quintal.

In Amritsar, the price of 1121 rice increased by ₹150 and 1718 Sella rice by ₹350 per quintal. There was good demand for rice in Bundi, Rajasthan, leading to a price increase of ₹300-350 per quintal. However, rice prices remained stable in Nagar Mandi (Uttarakhand), Karnal Mandi (Haryana), and Naya Bazaar (Delhi).