- Pre-booked port deals support prices despite weak demand
- Market remains cautiously optimistic ahead of new crop
Rice prices in Chhattisgarh strengthened this week, as supply constraints and ongoing mill maintenance outweighed weak demand. Ex-Raipur prices rose to INR 2,823/quintal from INR 2,800/quintal, amid limited availability and restricted material flow. Only a handful of mills remain operational, curbing liquidity and fund rotation.
Tight supply underpins market
Ongoing mill maintenance and temporary shutdowns tightened supply, supporting price stability. With restricted material flow and limited operational capacity, the market faced a structural scarcity. Traders noted that price support came from constrained supply rather than aggressive buying.
Pre-booked port deals reinforce firmness
FOB Vizag quotes for IR 64 rice rose from $350/tonne (t) to $356/t, while Kakinada moved from $356/t to $361/t. Most shipments were from pre-booked cargoes, leaving little room for open market trades. This dynamic stabilised prices despite soft downstream demand.
Cautious optimism ahead of new crop
With new paddy arrivals expected soon, market sentiment has been improving. Millers are focusing on maintenance and inventory management in preparation for the upcoming season. Freights eased due to good truck availability, but restricted supply continued to put upward pressure on prices.
Outlook
Prices are expected to remain firm until mill operations normalise and fresh arrivals increase availability. Any uptick in procurement or export demand could maintain firmness, while market participants continue to monitor weather and policy developments that may affect supply and demand.
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