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Informist, Monday, Sept. 30, 2024

By J. Navya Sruthi

MUMBAI – Prices of rice and wheat rose on Monday in key markets across the country, traders said. Prices of rice were up following the government's move to relax restrictions on exports of non-basmati rice, while those of wheat rose due to firm demand in the ongoing festival season and lower arrivals in domestic markets, traders said. Maize prices were steady today but are expected to fall this week, they said. 

Prices of Sona Masoori RICE, a non-basmati premium variety, were up by INR 300-400 per 100 kilograms on Monday in Bhavanipuram in Andhra Pradesh's Vijayawada, Ravi Kumar, a local trader said. Prices rose as the government allowed exports of non-basmati white rice, Shankar said. 

During the weekend, the government allowed exports of non-basmati white rice with a minimum export price of $490 per tonne. In July 2023, the government prohibited the export of non-basmati white rice due to concerns over lower paddy acreage and to control soaring prices. However, in December, it allowed exports of non-basmati white rice to some African countries.

The government also reduced the 20% export duty on parboiled rice to 10%. The government in August 2023 imposed a 20% duty on the export of parboiled rice to ensure adequate local stock and keep domestic prices in check. The duty was to be levied till Mar. 31, but in February the government said the duty would continue until further notice. 

Rice traders expect prices of paddy to remain at least 2-3% above the minimum support price of INR 2,300 per 100 kilograms as the government allowed exports of non-basmati white rice. Market participants also expect better rice production in the ongoing kharif season due to above-normal rainfall, but may not be enough to pull down rice prices.  

Prices of mill-quality WHEAT were up by INR 10 per 100 kilograms, at INR 2,675-2,600 per 100 kilograms on Monday in Rajasthan's Kota market. Arrivals were steady at 15,000 bags (1 bag = 50 kilograms), Aniket Mehta, a local trader said. Prices of the same quality wheat were at an all-time high of INR 3,030 per 100 kilograms in Delhi, up INR 55 from the previous day, according to a poll by Cogencis. 

Prices rose as the government said that there will not be any open market sales of wheat this year, Devendra Vora, a wholesale trader in Mumbai's Vashi mandi said. "High demand during the festival season and falling arrivals in the domestic markets will keep prices up," Vora said. Meanwhile, prices of mill-quality wheat in Vashi also rose to INR 3,050 per 100 kilograms, from INR 2,975-3,000 per 100 kilograms, Vora said. 

Traders expect wheat prices to rise by INR 150-200 per 100 kilograms in October with firm demand in the ongoing festive season and lower arrivals in markets. "The government wants wheat prices to remain elevated so that more farmers will sow wheat in the upcoming rabi season," Vora said. 

MAIZE prices were steady in Karnataka's Davanagere at INR 1,600-2,500 per 100 kilograms, Shiva Kumar, a local trader said. However, arrivals rose to 6,000 bags (1 bag = 60 kg), from 2,200 bags on the previous day, he said. Kumar expects prices at the upper end to fall to 2,000-2,200 rupees per 100 kilograms this week on higher arrivals. The grain with 25%-30% moisture content is being sold at INR 1,600 per 100 kilograms, Kumar said.  

In Telangana's Nizamabad, maize prices were steady at 1,788-2,529 rupees per 100 kilograms today, from the previous day, Amrutlal Kataria, a local trader said. Moisture content in the grain was 16%-27%, he said.  End

Edited by Saji George Titus

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