Rice

Prices of rice were unchanged in the spot markets, with the 1121 steam variety sold at 8,000 rupees per 100 kg in Taraori, Haryana, and Permal Raw variety quoted at 2,500 rupees in Delhi. Prices are likely to sustain at this level, at least till the next crop arrives in December. While export realisations of basmati rice have increased, export volumes haven’t changed much. India exported 4 mln tn of rice in 2016-17 (Apr-Mar), down 1.1% on year. In volumes terms, there has not been much change in exports. India exported over 700,000 tonne of rice to Iran in 2016-17 (Apr-Mar) marginally higher than 695,000 tonne the previous year.

The government had 22.8 million tonne rice in its stocks as of May 1, up from 21.3 million tonne a year ago, due to a higher procurement of rice. So far, 36.0 million tonne rice has been procured for the 2016-17 (Oct-Sep) marketing year, up 24% on year.

The central government has procured 36.0 million tonne rice so far in the 2016-17 (Oct-Sep) marketing year, up 24% on year. The Centre is buying rice from farmers at MSP of 1,470 rupees per 100 kg. Procurement has been the highest in Punjab, where the government has purchased 11.1 million tonne of the food grain, up 18.2% on year. In Chhattisgarh, 4.7 million tonne rice procured so far, up 35.4% on year, and in Haryana government bought 3.6 million tonne rice, up 25.2% from a year ago. About 141,302 tonne rice has been procured in Tamil Nadu so far, down 86.2% from a year ago. Procurement has been higher year-on-year in most states as India rice output in 2016-17 (Jul-Jun) is estimated at a record high of 109.15 million tonne.

Union Ministry of Consumer Affairs, Food and Public Distribution has stated that paddy procurement is already robust in Chhattisgarh and Odisha. The procurement target from the eastern States by the end of Kharif Marketing Season (KMS) 2017-18 is 155.93 Lakh MT. Presently, the figure stands at 53.65 Lakh MT for KMS. In consultation with the States it was decided to procure 330.00 lakh MT of wheat during Rabi Marketing Season 2017-18, which is considerably more in comparison with the last season actual procurement of 229.61 lakh MT. The State government decided to purchase 65 lakh metric tonnes of paddy during the Kharif Marketing Season for year 2016-17. Chhattisgarh stood second in the country in Kharif season 2015-16 among a list of 18 states with targetted procurement of 36 lakh metric tonnes of paddy crop during 2015-16 as per information made available by the Central Government in that year where Punjab ranked first with paddy procurement target of 82 lakh metric tonnes.

Despite adverse climatic condition, this agricultural district of Balasore has recorded bumper harvest of paddy this season. But farmers still resort to distress sale as the procurement process is yet to commence in this region. On the other hand, traders from West Bengal are set to make huge profit cashing in on the helplessness of the poor farmers. Though the government assessment has put the production at 50 quintals, some farmers have harvested more than 80 quintals per hectare. However, despite such bumper production, farmers are selling their produce at something around Rs 1,100 per quintal to traders of West Bengal against the government-fixed minimum support price of Rs 1,470 for fair average quality (FAQ) standard of paddy. It is not only paddy, farmers who have raised groundnuts, green gram and black gram, also suffer from distress sale.

Grade-1 variety of superfine rice cost Rs 53 per kilo in Vizag as against the state’s average of Rs 46.45 per kg. Prices are higher at the supermarkets. At the Rythu Bazar, sell the rice below Rs 50.

Agriculture Ministry estimates say the average per hectare Boro production in Bangladesh is about 4 tonnes. The nation’s food supply is likely to face a threat from the loss of Boro production in the current season from early flash-floods in the Haor wetlands, as well as pest attacks on paddy crops across the country. Rice prices are already unusually high and market insiders fear that the worst is yet to come. The government is now scrambling to make a quick response and has agreed the first rice imports for six years, ordering 600,000 tonnes.Government rice reserve came down to 262,000 tonnes on May 7. In May, last year the reserve was about 678,000 tonnes. Traders are also have very little rice in reserve.

Wholesale prices of rice were unchanged in major spot markets. The steam variety of basmati rice Pusa 1121 was sold at 6,800-6,900 rupees per 100 kg in Amritsar, while non-basmati variety Permal Raw sold for 2,900-3,000 rupees per 100 kg.

The National Cooperative Dairy Federation of India bought 600 tonne rice polish through an online auction on Thursday. The commodity, used as cattle feed, was bought on behalf of the Kerala Co-operative Milk Marketing Federation. Rice polish is the outer layer of a kernel of rice which is removed during polishing. The National Cooperative Dairy Federation of India, which has nearly 200 dairy cooperatives as members, has developed an online trading platform to purchase feed stock and sell dairy products.

The government is considering raising the minimum support price (MSP) of paddy by Rs 80 per quintal to Rs 1,550 for the upcoming 2017-18 crop year starting from July. The ministry has proposed Rs 80 per quintal increase in the paddy MSP for 2017-18 crop year. The suggested MSP for the common grade is Rs 1,550 and that of the ‘A’ grade Rs 1,590. The price increase proposed for paddy, however, is slightly higher than the Rs 60 hike effected during the 2016- 17 crop year. Paddy is grown in both kharif (summer) and rabi (winter) seasons. But much of the paddy output comes from the kharif crop, sowing of which normally begins with the onset of the Southwest Monsoon.

Prices of rice remained flat in major spot markets. The government also raised its estimate for 2016-17 rice crop to 109.15 million tonne from 108.86 million tonne projected earlier. Last year, India produced 104.41 million tonne of rice.

U.S. 2017/18 all rice production is forecast at 201.0 million cwt, down 23.1 million from the previous year, all on a substantial reduction in long grain acreage as indicated by the NASS Prospective Plantings survey issued March 31. The forecast 2017/18 yields are based on long-term historical trends and are higher for long grain but slightly lower for combined medium- and short-grain. Total 2017/18 rice supplies are forecast to decrease 7 percent from the previous year to 273.1 million cwt, primarily on the reduction in long grain. U.S. 2017/18 total use is projected at 235.0 million cwt, down 4 percent from last year with both domestic and residual use and exports projected lower. Long-grain exports are projected at 76.0 million cwt, down 3.0 million from 2016/17 on reduced exportable supplies. Combined medium- and short-grain exports are projected at 34.0 million cwt, down 1 million on increased export competition from Australia and Egypt. All rice 2017/18 ending stocks are projected at 38.1 million cwt, down 21 percent from last year. Long-grain stocks are projected at 20.7 million cwt, down 8 million from 2016/17, while combined medium- and short-grain are projected 2 million cwt lower at 14.6 million. The 2017/18 all rice season-average farm price is projected at $10.70 to $11.70/cwt, up $0.80 from the previous year’s revised midpoint. Total 2017/18 global supplies are at 599.9 million tons, up 2.6 million from 2016/17, based on larger carry-in stocks. World 2017/18 rice production is projected at 481.3 million tons, down fractionally from last year’s record output. Total world rice consumption is projected at a record 480.1 million tons, up from the revised 2016/17 level of 478.7 million. Global exports are projected at 42.2 million tons, up 0.8 million from 2016/17. Thailand and India are expected to be the leading rice exporters for 2017/18, both at 10.0 million tons. World 2017/18 ending stocks are projected at 119.8 million tons, up marginally from 2016/17. China continues to hold the majority of global rice stocks as its growing production and large imports continue to outpace consumption.

The state buyer issued a tender to import 50,000 tonnes of parboiled rice. Its first such tender in many years, after flash floods hit fields about to be harvested, potentially wiping out 700,000 tonnes of crops. the state agency also planned to import rice through government-to-government deals with producers such as Thailand, Vietnam and India as importing via tenders is a lengthy process. The world’s fourth-biggest producer of rice with more than 30 million tonnes of rice, Bangladesh consumes almost all its production to feed its population. It often requires imports to cope with shortages caused by natural disasters such as floods and droughts. State rice reserves in government warehouses have fallen to around 350,000 tonnes, the lowest in six years.