Weekly Review-Paddy-Rice

21-Dec-2024 07:16 PM

Paddy prices soften due to abundant arrival and limited demand

Paddy Prices: Paddy prices have softened due to the abundant arrival of new Kharif paddy, particularly Basmati, in major markets across the country. The price has dropped by Rs 100-200 per quintal due to weak demand from millers and exporters. The daily arrivals in Delhi’s Narela Mandi range between 30,000 to 50,000 sacks (quintals), while limited arrival is observed in Najafgarh. Significant quantities are also reaching Bhatpara and Rajim in Chhattisgarh, along with Amritsar, Fazilka, and Tarn Taran in Punjab. In Uttar Pradesh, Basmati paddy is arriving in large quantities in Etah, Mainpuri, Jahangirabad, Aligarh, and Khair Mandi, but lifting remains subdued.

Price and Export Trends: Prices of different rice varieties have softened in most mandis due to limited buying activity by millers and processors. While the export of Basmati rice shows positive growth and shipments of non-Basmati rice have started gaining momentum, prices have decreased slightly due to the softening of export offer prices.

Demand: Within the Basmati category, varieties such as 1509 and 1718 rice are seeing higher demand, but the demand for other types remains limited. Export shipments to some countries in West Asia are also lower, mainly due to ongoing tensions in the region, affecting the overall Basmati rice export market.

Rice Prices: In contrast to paddy, rice prices have shown mixed trends across various regions. In Bhatpara, the prices of HMT and Vishnubhog rice increased by Rs 100 per quintal, while in Amritsar, prices for 1509 Sela, 1718 Sela, and 1718 Steam rice also increased by Rs 100 per quintal. Prices remained stable in Rajim (Chhattisgarh) and Nagar (Uttarakhand), but decreased by Rs 100 in Bundi (Rajasthan). In Haryana’s Karnal Mandi, rice prices displayed a mixed trend, while Delhi’s Naya Bazar saw stability.

Summary: The paddy market faces a dip in prices due to abundant arrivals and limited demand from processors and exporters. While rice prices show a more stable or slightly rising trend in some areas, the overall export performance, especially for Basmati, is under pressure from regional instability.