Factors Behind the Price Decline
In March 2024, the price of non-Basmati rice witnessed a notable 10% decline, marking a significant shift in market trends. This drop in prices can be attributed to various factors impacting both supply and demand within the rice industry.
The decrease in non-Basmati rice prices can be primarily attributed to the increased availability of Bharat brand rice at more affordable rates, coupled with traders disclosing their rice stocks on a weekly basis. Additionally, the ban on rice exports has led to a surplus in the domestic market. It further contributing to the downward pressure on prices.
Impact of Government Initiatives
Following the implementation of measures by the central government, such as the introduction of Bharat brand rice and the weekly disclosure of rice stocks by traders and mills, the price of non-Basmati rice experienced a significant reduction. Bharat brand rice, distributed through various central government cooperative societies and retail chains. It is being offered at competitive prices, thereby influencing market trends.
At the wholesale level, the price of non-Basmati rice has dropped from $0,78 to $0,66 per kg or €0,72 to €0,61 per kg, highlighting the robustness of the supply side. The decline in export demand due to the export ban has kept the availability of rice in the domestic market. This has exerted downward pressure on prices.
Government Policies and Export Restrictions
The government’s decision to impose export restrictions on non-Basmati white rice in July 2023, aimed at mitigating inflationary pressures, has significantly impacted the rice market. Export duties and minimum export prices were implemented. This led to a substantial decline in India’s non-Basmati rice exports between April 2023 and January 2024.
The repercussions of export restrictions have also extended to the Basmati rice market, with prices experiencing a decline in recent months. Reduced demand, particularly from foreign buyers, has favored competitors like Pakistan, particularly with India’s minimum export price.
In conclusion, the notable 10% decline in non-Basmati rice prices in March 2024 is a result of multiple factors reshaping market movements.
The following reports may be of interest to you:
Related posts:
India’s Strategic Shift in Rice Export Policy Kalanamak Rice Paves the Way for Exemption Amid Export Curbs, Setting a Precedent for Specialty Varieties 
Commodity Markets Remain Quiet Except for Rice 
Basmati Blues: A Grainy Tale of Turbulence Navigating the Storms and Sunshine in India's Basmati Rice Market 
World May Face Global Rice Supply Deficit 
India May Stand to Gain $1 Billion Revenue From Rice Exports Global market gets attuned to 20% duty on shipments of non-basmati whites 
India: Agri Exports Up 12% To $19,7 B in Apr-Dec, to Top $26 B in FY23 APEDA Chairman says shipments will exceed $27 unless there is a global slowdown India: Rice, wheat lead 23% increase in agri exports in H1 
India’s rice exports likely to top last year’s performance