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Basmati paddy prices to remain steady

Inspite of headwinds in global trade, Basmati paddy prices are expected to remain steady owing to better quality of the crop and the expectation that the export will pickup in later part of current financial year. The early maturing variety of basmati paddy is being pegged at Rs 2,600 per quintal in the market at present. “The current prices are comparable to last year when the low output and strong export had supplemented the demand,” says Ashok Sethi, director, Punjab Rice Millers and Exporters Association.

The price of basmati is a product of dynamics in global rice trade. The export market is facing turbulence in the current financial year but the buyers are optimistic given the robust export growth in volumes of 8.8% recorded in the last financial year. Currency devaluation and better international pricing due to low stock of premium rice in India and Pakistan have helped this situation.