Key Updates on Rice and Ethanol Market

09-Jan-2025 10:32 AM

Key Updates on Rice and Ethanol Market
Rice for Ethanol Production:
Government announces sale of rice for ethanol production at ₹28/kg (factory delivery price). Previously, it was sold at ₹20/kg excluding transportation costs.
Ethanol from rice is priced at ₹58.5/liter, with no recent price increase.
OMSS Scheme Updates:
Rice will be sold under the OMSS scheme to private parties, cooperatives, small traders, and other agencies at reserve prices. No additional transportation costs will be charged.
Reason for Demand:
Poultry industry demands rice-based ethanol due to high maize prices.
Global Rice Market Trends:
Weak demand leads to a 5% drop in international rice prices.
Sri Lanka: Rice import period ends.
Malaysia: Importers seek prices at $490 CIF, while exporters quote $580, leading to a deadlock.
Impact of a weaker rupee affects price dynamics.
Regional Rice Prices (5% Broken White Rice):
Thailand: $494/ton (up from $424/ton in mid-December 2024).
India: $447-451/ton.
Pakistan: $449-553/ton.
Vietnam: $460-464/ton.
Parboiled Rice Prices:
India: $440-444/ton.
Pakistan: $462-466/ton.
Thailand: $506/ton.
Supply Chain Issues:
500 containers stuck at Malaysian ports due to import cancellations.
Expectations of strong demand from Africa, with 14 ships anchored at Kakinada port.