Rice exports to Bangladesh may not have a significant impact on prices in W. Bengal

The predicted surge in demand for non-basmati rice from the neighbouring Bangladesh notwithstanding, rice costs in West Bengal is very likely to keep on being range certain this calendar year on the again of an approximated increase in generation and distribution of cost-free rice by federal government.

In accordance to sector insiders, cost of the common selection non-basmati rice in Bengal is down by close to 8 for each cent at ₹2,two hundred-two,250 a quintal this calendar year as in contrast with ₹2,400-two,five hundred a quintal exact same period of time final calendar year. Cost of paddy has been continual at final years’ amounts at close to ₹1,five hundred-one,seven-hundred a quintal this calendar year.

Bangladesh lately floated a tender to get 50,000 tonnes of non-basmati rice from India. This aside, there is also a good demand for non-basmati rice from India in nations around the world this sort of as Vietnam and Africa.

In 2019-20, Bangladesh imported close to 9 lakh tonne of non-basmati rice approximated at close to ₹2,600 crore. While exact figures for 2020-21 have been not commonly offered, sector estimates suggest that exports to Bangladesh would be close to 10-fifteen lakh tonne.

A big chunk of the rice exported to Bangladesh generally goes from West Bengal and the the vast majority of the export transpires involving September and February.

“The non-basmati rice exports to Bangladesh may not have a significant effects on costs as federal government – the two centre and point out – has been distributing cost-free rice in a big way and this has introduced down costs in open sector to some extent,” Sushil Kumar Choudhury, President, Bengal Rice Mills Association, told BusinessLine.

Greater Production

Production of kharif paddy, which is the common crop of West Bengal, is anticipated to be increased this calendar year backed by favourable weather conditions ailments and sufficient rains, sector sources stated.

The Point out produces close to 10.five-eleven million tonne of paddy all through the kharif season accounting for just about 70 for each cent of the whole generation which is approximated to be close to fifteen-sixteen million tonnes a calendar year and just about fourteen for each cent of the country’s whole generation.

As for each formal estimates, West Bengal has five.eight million hectares below rice cultivation. While formal estimates are nevertheless not offered, nevertheless, the Point out is very likely to register a increased crop this calendar year. Sowing of paddy is presently underway in Bengal and harvesting is anticipated to start by mid-October.

“There have been sufficient rains and the weather conditions ailments glimpse very favourable so we are anticipating a very good generation this calendar year. We also have an sufficient inventory from final calendar year so we do not hope any significant increase in costs of paddy and rice this calendar year,” stated Suraj Agarwal, CEO, Tirupati Agri Trade.

Rice costs may inch up marginally by about two-to-three for each cent backed by demand from export marketplaces, he included.