iGrain India - Paddy prices rise on the back of better export demand for rice
Weekly Review of Paddy and Rice Prices (14-20 November)
Paddy prices have seen a notable rise, driven by stronger export demand, particularly after the government’s decision to abolish the minimum export price (MAP) for Basmati and non-Basmati rice. This includes the removal of the $950 per tonne MAP for Basmati rice and the $490 per tonne MAP for non-Basmati white rice. Additionally, the withdrawal of a 20% export duty on Sela rice and the permission for duty-free export of white rice have contributed to the upward trend in paddy prices.
Harvesting and Market Trends The harvesting of the Kharif paddy crop is underway across major producing states, with an increase in market arrivals. Despite this, the prices of paddy saw a normal to significant increase during the week. Non-Basmati paddy is in demand from government agencies and traders, while Basmati paddy is primarily being purchased by millers and processors.
Price Trends in Key Mandis:
- Delhi: The price of 1718 paddy in Narela Mandi surged by Rs 225, reaching Rs 4000 per quintal. Other varieties like 1121 and 1509 also saw an increase of about Rs 50 per quintal. Prices strengthened by Rs 50-100 in Najafgarh, Bhatpara, and Rajim Mandis. In Amritsar, prices for 1121, 1509, and 1718 varieties increased significantly, with 1718 rising by Rs 507, reaching Rs 4413 per quintal.
- Punjab, Haryana, and Western Uttar Pradesh: Paddy supply from these regions has started, and price increases were seen across most varieties. However, in Tohana Mandi, Haryana, the price of 1401 paddy dropped by Rs 525 to Rs 3470 per quintal.
- Rice Markets: The price of rice remained mostly soft across the country, with significant drops in places like Raichur, Karnataka, where prices fell by Rs 1000-1100 per quintal. In Amritsar, some varieties of Basmati rice saw price improvements of Rs 100-200, largely driven by higher demand from exporters. For instance, the price of 1509 steam rice increased by Rs 200, reaching Rs 6800-6850 per quintal.
- Uttarakhand and Haryana: In Nagar Mandi, Uttarakhand, rice prices rose by Rs 200-300. However, sluggish rice trading in Karnal, Haryana, and Naya Bazar, Delhi, kept prices steady or soft in these regions.