New Delhi: Following the peace agreement between the US and Iran and the subsequent opening of the Strait of Hormuz, expectations for Indian rice exports—particularly Basmati—to West Asia, the Middle East, and the Gulf region have risen. Consequently, millers, processors, and exporters showed keen interest in purchasing Basmati paddy during the week of June 20–26, creating a trend of rising prices.

The market is currently in the off-season for paddy supply, with arrivals of Basmati and 'A' grade paddy limited to select markets. These include mandis such as Narela, Bhatapara, Rajim, Jahangirabad, Shahjahanpur, Kota, and Bundi. Additionally, paddy is arriving from Gondia (Maharashtra) and Khair and Dibai (Uttar Pradesh). Most markets witnessed either stable or rising paddy prices during the week under review. Jahangirabad saw daily arrivals of 6,000–8,000 bags; driven by robust trading, the price of '1509' paddy rose by ₹220 to reach ₹3,900–₹4,170 per quintal.

Similarly, in Dibai, the price of '1509' paddy increased by ₹150, reaching ₹3,900–₹4,100 per quintal. Strong buying interest in the Bundi mandi led to a price rise of ₹100–₹150 per quintal, whereas in Kota, the price of '1509' paddy fell by ₹100 to settle at ₹4,000–₹4,200 per quintal. Paddy cultivation has commenced in some states.

As for rice, significant price increases were recorded across various varieties and grades in markets such as Amritsar, Rajim, Nagar, Bundi, and Naya Bazar (Delhi). Along with out-of-town traders, exporters also showed considerable activity in purchasing rice. However, tensions between Iran and the US have escalated once again, creating uncertainty regarding the movement of ships through the Strait of Hormuz. This could heighten concerns for Basmati rice exporters.