Q1 rice exports may be hit as parboiled prices increase on Govt procurement

India’s non-basmati rice exports will likely be affected in the first quarter this year as rates of domestic parboiled rice have increased in view of the Union government purchasing the cereal for distribution under the free foodgrains scheme for poor families.

“Parboiled prices are up by $20-30 a tonne (₹1,500-2,225) as there is higher consumption at home. There is also panic buying by the procurement agencies,” said VR Sagar, Director, Bulk Logix.

These purchases are happing in the central parts of the country in regions such as Nagpur and Chattisgarh.

Ensuring ample stocks

Trade sources said the Centre was procuring parboiled in those regions to distribution in Chattisgarh and Bihar. “From Chhattisgarh, it is easy to transport to Bihar,” a trade analyst said, adding that the Centre was keen to ensure ample stocks till 2023 November-December.

The purchases are being made as…