Supply-Demand Imbalance Signals Stronger Rice Market Ahead
Old stock of paddy has almost been cleared from the markets, especially in major centers like Amritsar, Karnal, and Kurukshetra. This year, only about 18–20% of Sathi paddy was sown, and production is expected to be just 15–16%. Because of this, arrivals in areas like Gadarpur, Rudrapur, and Rampur have dropped to only 30% of last year’s levels. Due to this sharp decline in arrivals, the price of dry 1509 paddy has risen to ₹2900–₹3000 per quintal, while paddy with 14–15% moisture is being sold at ₹2600–₹2660 per quintal. As for rice, 1509 variety that was selling at ₹6000 per quintal last week has now increased by ₹200 to ₹6200, and today again it rose by another ₹200. Similarly, the 1718 Sella rice variety has gone up from ₹6200 to ₹6500 per quintal. Looking ahead, there is strong potential for further price increases, since the new crop will not arrive for another 3–4 months. While sowing in Haryana and Punjab has been good, there is currently a huge shortage of stock in the market and export demand is rising steadily. Old rice stocks are almost exhausted, with 70% of the exporters’ shipments already dispatched from Indian ports and the rest scheduled soon. Indian rice is priced competitively in the global market, which is increasing exporter interest. Meanwhile, tensions in Gulf countries are easing, and Pakistan’s trade situation has worsened due to the recent surgical strikes—giving Indian rice an additional edge. Considering all these factors, experts believe that rice prices could rise by another ₹200–₹300 from the current levels.