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Informist, Wednesday, Aug 21, 2024

By J. Navya Sruthi

MUMBAI – Price of basmati rice fell today in Mumbai's Vashi mandi due to prospects of a good crop, traders said. Price of wheat rose slightly in Indore, Madhya Pradesh, but was steady in Kota, Rajasthan. Maize prices were steady across the key markets in India, traders said.

Price of 1509 basmati RICE was down 300 rupees at 7,700-7,800 rupees per 100 kg in Vashi, local wholesale broker Devendra Vora said. Prices fell as arrivals of the 1509 variety have started in the market, Vora said, adding that prospects of a good crop also weighed on prices.

Further, a high minimum export price for basmati rice has weighed on exports from India, as the basmati rice from Pakistan is available at a cheaper rate, a Delhi-based trader said. The minimum export price for basmati rice is $950 per tn and parboiled rice attracts 20% export duty.

The all-India average wholesale price of rice was 3,932.39 rupees per 100 kg, up 48.89 rupees from 3,883.5 rupees on Tuesday, according to the consumer affairs department.

Prices of mill-quality WHEAT were steady at 2,600-2,625 rupees per 100 kg, Aniket Mehta, a local trader in Rajasthan, said. Arrivals fell by 300 bags from Tuesday to 1,500 bags (1 bag = 50 kg) due to heavy rains in Rajasthan, Mehta said.

In Indore, prices of the same variety of wheat were slightly up by 10–15 rupees at 2,735-2,750 rupees per 100 kg, Lavish Shah said. Arrivals in Indore rose by 150 bags to 950 bags (1 bag = 100 kg), Shah said.

"Prices rose as arrivals are lower than usual," the trader said. Usually arrivals are around 1,500 bags, Shah said.

In Vashi, prices of mill-quality wheat were steady from the previous day at 2,900 rupees per 100 kg, said Vora.

The all-India average wholesale price of wheat was 2,761.24 rupees per 100 kg, down 61 rupees from 2,767.34 rupees on Tuesday, according to the Department of Consumer Affairs.

At 1825 IST, the most-traded December wheat contract on the Chicago Board of Trade was down 0.5% from its previous close at $5.53 per bushel (1 bushel = 27.2 kg). Wheat futures contracts fell on the CBOT due to a strong dollar index, which makes commodities priced in the greenback expensive for overseas buyers.

However, concerns about a lower wheat harvest in the world's largest exporter, Russia, limited the fall in prices. A report by news agency Reuters quoted Russia's Agriculture Minister Oksana Lut as saying that the ministry has maintained the official forecast of 132 mln tn for the total grain harvest, including 86 mln tn of wheat, but the forecast for wheat could be lowered as harvesting draws to a close.

Prices of MAIZE in Madhya Pradesh's Chhindwara were steady from the previous day at 2,500-2,590 rupees per 100 kg, local trader Niraj Sahu said. He said there were no arrivals today after the celebrations of local festival, Bhujariya, on Tuesday. "There is good demand from Karnataka and prices are seen steady with new crop arrivals," Sahu said.

Prices of maize in Karnataka's Davanagere were also steady at 2,850-2,900 rupees per 100 kg, local trader Shiva Kumar said. There were no arrivals today. Local poultry farms are using their stocks while others are buying from Madhya Pradesh, he added.

At 1828 IST, the most-traded December corn contract was up 0.3% from the previous close at $3.9 per bushel (1 bushel = 27.2 kg) on CBOT. Corn futures contracts were up today due to lower acreage in Argentina.

The Buenos Aires Grain Exchange expects a 17% drop in Argentina's corn area to 15.5 mln acres (1 acre = 0.4 ha) in 2024-25, Reuters reported. Argentina is the fifth-largest producer and second top exporter of corn. In 2023-24, Argentina produced 52 mln tn of corn and exported 37 mln tn, according to the US Department of Agriculture.

End

US$1 = 83.92 rupees

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Ashish Shirke

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