Agricultural Supply and Demand Outlook
Paddy
• The FAO All Rice Price Index (2014-2016=100) rose for the fifth
successive month in May to reach 109.2 points, up 3.5 percent from
April and just 1.2 percent below its year-earlier level. May export
prices of Indica rice were generally firm in Pakistan, Thailand and Viet
Nam, as offshore demand remained upbeat, counteracting the
influence of currency depreciations vis-à-vis the United States dollar
in these exporters. Although this was also the case for prices of lower
quality supplies in India, quotations of higher quality rice continued to
ease in India weighed by the arrival of the recently harvested "Rabi"
rice in the context of the already ample rice stocks. In the Americas,
expectations of consecutive output declines kept long-grain prices in
the United States of America on the rise, despite low demand.
• International rice prices continued to increase, while prices of coarse
grains declined.
In May, 2022 International export prices of Indian Rice (25% broken)
was quoted at US Doller 329.25/tonnes where as it was US Doller
326/tonnes in April, 2022.
MSP for the Kharif Marketing season 2022-23 is Rs. 2040/quintals for
common paddy and Rs. 2060/quintals for Paddy Grade-A. Which is
5.2% and 5.1% higher than previous year, respectively and is 50% over
return of cost of production.
In the next kharif season 2022-23 Uttar Pradesh government has set
target to increase 17.04 lakh metric tonnes(Imt) paddy production to
177 Imt.
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