Decline in production leads to 10-20 percent increase in rice prices

07-Jun-2024 08:45 PM

Mumbai. Although the Central Government has estimated the domestic production of rice to increase to a peak level of 1367 lakh tonnes during the 2023-24 season, which is 9.45 lakh tonnes more than the estimated production of 1357.55 lakh tonnes in the 2022-23 season,

given the complex situation of supply and availability and the rise in prices, the industry-trade sector believes that the actual production has been less than the government estimate. It is worth noting that there is a ban on the commercial export of 100 percent broken rice and non-basmati white rice from the country.

The price of rice has increased by 10-20 percent in the wholesale market of Navi Mumbai. There the price of Basmati rice is running between Rs 70 to Rs 110 per kg and the price of general category rice is between Rs 28 to Rs 70 per kg.

It is natural for the price to be higher than this in the retail market. Traders and stockists working in the premises of Agricultural Produce Marketing Committee (APMC) located in Vashi say that though the Central Government has estimated a magnificent production of 1367 lakh tons of rice,

the reality is that due to less rainfall and high temperature during the last monsoon season, the production of paddy and rice decreased. As a result, the prices of rice of different varieties and categories increased by 5 to 10 percent. The wholesale market price of Basmati rice was between Rs 65 to Rs 100 per kg in May,

which has increased to Rs 70-110 per kg in the current month. Similarly, the price of normal category rice has increased from Rs 22-60 to Rs 28-70 per kg.

It is worth mentioning that a huge amount of rice is supplied to the Vashi wholesale market from southern states, Uttar Pradesh and Gujarat etc.

Apart from this, normal rice also reaches there from Nagpur, Chandrapur and Thane etc. whereas rice is brought from Punjab, Haryana and Uttar Pradesh where its supply is in off season.