Non-basmati rice export to Bangladesh may result in higher paddy prices

Export orders for non-basmati rice from Bangladesh are likely to increase prices of paddy this rabi season, helping farmers to realise better margins compared with the kharif crop. Bangladesh has issued tenders for importing non-basmati rice, which is likely to bail out West Bengal from an abundant situation. “The Indian rice export to Bangladesh is mainly sourced from West Bengal, but export doesn’t take place every year. For this, West Bengal often faces an abundant situation and paddy prices at the open market falls.

Open market paddy prices have been lower by `600-800 per quintal during the Kharif season, and paddy at the current point of time is being traded at `800 a quintal, against an MSP of `1,878 a quintal,” Haridas Mukherjee, a farmer, said.

West Bengal produces an average 20.5 million tonne of rice every year, with more than 15 million tonne coming during the khariff season. The MSP of `1,878/quintal is the best price that farmers get from their produce and it just recovers the cost, leaving only a thin margin if sold in bulk, Mukherjee said. The state government had procured 4.8 million tonne of paddy last year (procurement year is November to October) at MSP rates and this year it has set a target of procuring 5.2 MT at the same MSP.