Rice prices up 15%, Palm oil seen rising too
03/01/2023 (Economic Times) - Rice and palm oil are becoming more expensive in India. In the last one month, the price of rice has increased by up to 15 per cent, while that of palm oil is seen rising by Rs 5-7 a litre in the coming weeks.
The basmati variety of rice is selling at a record high of Rs 110 per kg as compared with Rs 95 per kg a month ago. Traders attribute this to rice millers building stocks in anticipation of better prices in the world market as floods in Pakistan have damaged the country's rice crop.
"This is happening despite hardly any orders from Iran, one of the biggest markets for Indian basmati rice," said Suraj Agarwal, CEO of Rice Villa Group, a rice marketing and exporting firm.
Experts said prices of non-basmati rice are increasing because of an expected drop in kharif rice production, withdrawal of a government-run food security scheme, and duty-free exports of paddy to Nepal. Kharif rice production in 2022-23 is estimated at 104.99 million, which is 6.77 million tonnes less than 111.76 tonnes in 2021-22.
"Secondly, the withdrawal of Pradhan Mantri Garib Kalyan Anna Yojana, which was introduced during Covid, has been withdrawn from December 31, 2022," said Agarwal.