Rice Market Faces Slowdown, But Future Price Rise Expected
Sales of all varieties of Basmati rice in the country�s markets are currently weak. The domestic market has not been favorable for the past six months, but recently, due to increased demand from exporters, there has been some improvement in the market. While the pressure on stock levels has been fluctuating, exporters have started accumulating stock, especially in response to growing demand from Qatar. Additionally, the upcoming business fair in Dubai is expected to boost trade for rice exporters. In such circumstances, traders have an opportunity to conduct business during the current slowdown, and there is a likelihood of a price rise in the future. The production of paddy and rice has been higher this year, leading to large stockpiles in rice mills. However, the export levels have not kept pace with production, causing rice prices to remain low. Currently, milling paddy is proving to be expensive for mills, and most traders are working on labor contracts, resulting in a significant reduction in stock levels. Given these circumstances, there is an expectation of a market improvement for Basmati rice at current prices. Additionally, there is no indication of a slowdown in the market for coarse rice.