Paddy prices under pressure in West Bengal

West Bengal is possible to document a bumper generation of kharif paddy this yr. But

West Bengal is possible to document a bumper generation of kharif paddy this yr. But this is no very good news for farmers of the Point out as price ranges have previously commenced shifting south. Lacklustre need in the domestic market place moreover drop in export to neighbouring Bangladesh are weighing on market place sentiments.

In April, the price ranges of paddy in West Bengal surged in the wake of the pandemic by just about ₹100 a quintal to ₹1,616. By July-August, the price ranges moved to just about ₹1,770 a quintal on the back again of continuous procurement (of the winter season crop) by the governing administration.

On the other hand, with the distribution of absolutely free rice by the Point out and Centre in the subsequent months, the price ranges in the open up market place commenced inching down. As on date, paddy cost in the open up market place is about ₹1,617 a quintal in opposition to MSP of ₹1,868. According to trade sources, the open up market place cost of paddy is possible to decrease further as new arrivals start following thirty day period also, there is uncertainty over exports to Bangladesh.

“Between September and February each yr (nine lakh tonnes previous yr), a very good quantum of non-basmati rice is exported to Bangladesh and this retains price ranges business in the domestic market place. On the other hand, this yr the Bangladesh governing administration has levied 55 for every cent import responsibility, and therefore there has been no orders. This is what is placing price ranges below tension,” claimed Suraj Agarwal, CEO, Tirupati Agri Trade.

Procurement, output

West Bengal, which makes close to fifteen-16 million tonnes of paddy just about every yr across the 3 seasons and accounts for just about 14 for every cent of the country’s full generation, is possible to witness larger crop this yr. The “better than optimum” rainfall obtained in the course of the season is possible to push up the yield of the crop this yr, claimed sources in the Point out agri department.

Pradip Kumar Mazumder, Chief Advisor (Agriculture) to the Chief Minister, claimed, “In phrases of space below cultivation, we are previously saturated, so there is no improve, but supplied the supportive weather conditions, the yield this yr is possible to be larger than prior yr.”

That claimed, procurement in Bengal is not possible to be any larger this yr, say trade sources.

The Point out has usually found only constrained procurement 70 for every cent or extra of it is really only offered in the open up market place exactly where price ranges fluctuate depending on need and quality. According to Sushil Kumar Choudhury, President, Bengal Rice Mills Affiliation, the procurement by the Point out governing administration previous yr was forty nine lakh tonnes (lt) in opposition to the target of fifty two lt. This yr far too, he suggests, not extra than 50-fifty two lt may be procured.

Provided that the generation is possible to be larger than previous yr, price ranges are possible to fall further unless the governing administration ways up its procurement this yr, a rice mill owner claimed on situations of anonymity.