OfBusiness Rice Dailies | 19th July 2023

Price

• The price of Basmati paddy is rising, currently at approximately Rs. 3111 per quintal, indicating an increase from the previous day.
• The price of fine rice and basmati rice has remained stable at the previous closing level of Rs. 7,300-7,400 per quintal for 1509 Sela variety.
• There was a decline of Rs. 300 in the price of rice in the past day.
  The fear of a halt in exports has caused a decrease in trade, leading to the price decline.
• Despite the current price, trading in rice can be profitable.

Demand and Supply

• The supply of fine rice and basmati rice has significantly decreased in the past week.
• However, in the past two to three days, trading has not been as high, which raises concerns about the profitability of sales.
• Overall, there doesn’t seem to be a significant drop in demand despite the current market conditions.
• There has been a significant decrease in the supply of fine rice and basmati rice in the past week.

News

• The West Bengal Government has asked Tamil Nadu for 50,000 tonnes of rice to address the current food crisis. The food scarcity in West Bengal is attributed to reduced allotments of rice and wheat from the central government, caused by nationwide production declines due to drought and floods.
• The supply of fine rice and basmati rice has seen a considerable decrease in the past week, resulting in a more active market.

OFB’s Opinion

• Rice traders can take advantage of the recent decrease in supply and the resulting increase in market activity, which presents a favorable opportunity.
• Based on the current outlook, it seems unlikely that there will be a prolonged slump in the rice market, which should help alleviate concerns about a potential downturn.