Basmati rice is selling for a record high Rs 110/kg compared to Rs 95/kg a month ago. Traders attributed this to rice millers hoarding stocks in anticipation of better prices in the world market as floods in Pakistan damaged the country’s rice crop.
“This is happening despite almost no orders from Iran, one of the major markets,” said Suraj Agarwal, CEO of Rice Villa Group, a rice export and marketing company. of Indian basmati rice.
Experts say the price of non-basmati rice is increasing due to expected kharif rice production to fall, the government-run food security plan being withdrawn, and duty-free rice exports to Nepal. Kharif rice production in 2022-23 is estimated at 104.99 million tons, 6.77 million tons lower than 111.76 tons in 2021-22.
Agarwal said: “Secondly, the Pradhan Mantri Garib Kalyan Anna Yojana withdrawal, introduced during Covid, has been withdrawn from December 31, 2022.
