AgenciesDomestic prices of rice have increased by 3-7% in the past one week to 10 days, due to concerns about a possible fall in kharif paddy production, especially in Jharkhand and Bihar which have received below-normal rainfall.
Export prices of the fine variety of parboiled rice have also risen, as India is the only supplier of this variety of the staple grain. West Bengal, Bihar, Uttar Pradesh and Jharkhand are the major rice-producing states in eastern India.
Prices, though, may cool in the coming weeks, as continuous rains since August 15 in the paddy-sowing areas of West Bengal, the largest rice producer in India, are expected to help salvage nearly 90% of the paddy crop in the state, said traders. However, neighbouring Bihar, where rainfall is still deficient, is unlikely to recover from the crop shortage. Bihar has recorded 40% less rains than the normal so far this monsoon season. The price of parboiled rice in eastern India has increased by 4-7% in 8-10 days.
Binod Aggarwal, managing partner of brokerage firm SGR from West Bengal, said: "Due to fears about a fall in production of new rice, especially due to deficient rainfall in Jharkhand and Bihar, the price of the Swarna variety of parboiled rice has increased by Rs 1-2/kg in the past 8-10 days to Rs 26-28/kg (in retail)."
Exports of long-grain varieties from the Kakinada port are taking place at $375-380 a tonne, up 3-4% in the past one week to 10 days.
The Bihar government has started distributing short-duration paddy seeds so as to increase production, but farmers said it would not help much. "We need water for transplantation which is not there till now," said Rajiv Ranjan Kumar from Nalanda. Bihar produces around 7.4 million tonnes of rice annually.
As on August 21, the rainfall deficit in East and Northeast India was 18%.
Cooking oil industry body Solvent Extractors' Association called this 'a cause of concern, as a sizable quantity of kharif paddy crop emanates from these regions". Rice bran oil production is dependent upon the paddy production.
In West Bengal, the situation has improved in the past one week.
Export prices of the fine variety of parboiled rice have also risen, as India is the only supplier of this variety of the staple grain. West Bengal, Bihar, Uttar Pradesh and Jharkhand are the major rice-producing states in eastern India.
Prices, though, may cool in the coming weeks, as continuous rains since August 15 in the paddy-sowing areas of West Bengal, the largest rice producer in India, are expected to help salvage nearly 90% of the paddy crop in the state, said traders. However, neighbouring Bihar, where rainfall is still deficient, is unlikely to recover from the crop shortage. Bihar has recorded 40% less rains than the normal so far this monsoon season. The price of parboiled rice in eastern India has increased by 4-7% in 8-10 days.
Binod Aggarwal, managing partner of brokerage firm SGR from West Bengal, said: "Due to fears about a fall in production of new rice, especially due to deficient rainfall in Jharkhand and Bihar, the price of the Swarna variety of parboiled rice has increased by Rs 1-2/kg in the past 8-10 days to Rs 26-28/kg (in retail)."
Exports of long-grain varieties from the Kakinada port are taking place at $375-380 a tonne, up 3-4% in the past one week to 10 days.
The Bihar government has started distributing short-duration paddy seeds so as to increase production, but farmers said it would not help much. "We need water for transplantation which is not there till now," said Rajiv Ranjan Kumar from Nalanda. Bihar produces around 7.4 million tonnes of rice annually.
As on August 21, the rainfall deficit in East and Northeast India was 18%.
Cooking oil industry body Solvent Extractors' Association called this 'a cause of concern, as a sizable quantity of kharif paddy crop emanates from these regions". Rice bran oil production is dependent upon the paddy production.
In West Bengal, the situation has improved in the past one week.
( Originally published on Aug 22, 2022 )
Experience Your Economic Times Newspaper, The Digital Way!
Read More News on
(Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)
...moreDownload The Economic Times News App to get Daily Market Updates & Live Business News.
