Prices of Rice and Wheat Drops Due to Export Ban & Arrival of New Crop

In the last 10 days, retail prices for rice and wheat flour have dropped by 7% and 5%, respectively. According to a news agency, the wheat export embargo lowered the cost of grain and atta, while the arrival of the summer rice crop lowered the cost of commonly consumed non-basmati rice.

Wheat costs Rs. 23 per kg at the mandi level in western and eastern India and Rs. 22 in northern India. In south India, it costs Rs 26 per kg, which includes the cost of transportation. According to a news agency, atta currently costs Rs. 30 per kg in western and eastern India, Rs. 29 in the north, and Rs. 33 in the south.

"Across the whole value chain, prices have dropped by 5%. The retail price of Atta has decreased by 5% as well," said Anjani Agarwal, president of the Roller Flour Millers' Association.

"The demand in the United States is quite strong. We don't expect prices to drop significantly from here "According to Ashish Khandelwal, managing director of BL Agro, an FMCG and edible oil company situated in Bareilly.

Prices have begun to reduce after the advent of Aman rice on the market. West Bengal has seen a 7 percent decline in costs since then. Tirupati Agri Trade's chief executive, Suraj Agarwal, said, "As a result of the arrival of additional rice, prices have dropped by 7% in the last ten days.

In addition, when summer rice has arrived, prices have lowered in Tamil Nadu, Telangana, Andhra Pradesh, Odisha, and Chhattisgarh. "Rice prices are unlikely to rise this year due to adequate supply in India," said Agarwal. 

According to the government's second advance forecast, rice output is expected to reach a new high of 127.93 mt in 2021-22.