Weekly Review: Paddy and Rice

New Delhi. Although major agricultural markets (*mandis*) in North India are witnessing a robust influx of Kharif-season paddy—including both Basmati and 'A' grade non-Basmati varieties—there is no significant downward pressure on prices. This is due to strong buying interest from rice millers, processors, traders, stockists, and exporters. There is a particularly high demand for coarse non-Basmati rice in African nations, while West Asia, the US, and Europe are showing strong demand for 'A' grade and premium-quality Basmati rice. Despite recent price increases, Indian rice remains competitive in the global export market.

During the week of October 24–30, there was a substantial supply of Basmati and 1509-variety paddy in several markets, including Narela and Najafgarh (Delhi); Amritsar, Tarn Taran, and Fazilka (Punjab); Gohana, Tohana, Karnal, and Palwal (Haryana); and Shahjahanpur, Jahangirabad, Aligarh, and Khair (Uttar Pradesh).

Markets in Rajasthan—such as the one in Bundi—along with those in several other states, saw significant activity due to the arrival of paddy. Depending on demand and buying interest, paddy prices remained either stable or showed an upward trend. Farmers are earning attractive returns this season.

The average price for paddy is currently ranging between ₹3,500 and ₹4,000 per quintal, with higher-quality varieties reaching ₹4,500–₹5,000 per quintal. This has led to an increase in rice prices as well. It should be noted that there is no Minimum Support Price (MSP) for Basmati paddy; its price is primarily determined by market forces.

In light of the escalating tensions between the United States and Iran, countries in West Asia, the Middle East, and the Gulf region are seeking to bolster their stock positions by importing Basmati rice from India as quickly as possible. Although the shipping route through the Strait of Hormuz remains insecure, rice exports from India are continuing on a regular basis.