India: Paddy 1509 prices decline amid heavy arrivals, cautious buying

• Prices ease after recent highs as millers remain selective, margins shrink
• Narela leads arrivals at 70,000 bags, followed by Samalkha at 60,000 bags

Indian paddy 1509 prices witnessed a sharp correction across key mandis in northern India during 3-4th october with increased arrivals and cautious miller buying weighing on prices. The decline comes after prices had moved to higher levels, putting pressure on milling margins and prompting buyers to remain selective.

Paddy 1509 prices correct amid heavy arrivals

Paddy 1509 prices have come under pressure across key mandis in northern India amid heavy arrivals and cautious buying by millers. Prices declined by INR 100-300/quintal (qtl) at several locations, while the overall correction over two days was reported at up to INR 500/qtl. The pressure was largely linked to the gap between fresh arrivals and buying activity. Farmers continued to bring paddy to mandis, while millers remained cautious at higher price levels.

Narela records highest arrivals

Narela recorded the highest arrivals at around 70,000 bags, with the combine rate at INR 3,950-4,000/qtl. Samalkha received around 60,000 bags, with the combine rate at INR 3,931/qtl. Jahangirabad recorded arrivals of more than 50,000 bags, with hand rates at INR 4,000-4,101/qtl and combine rates at INR 3,800-3,851/qtl. Kosikalan received around 35,000 bags, with rates at INR 3,400-3,800/qtl, while Mathura recorded around 30,000 bags. Other reported rates included INR 4,100/qtl at Kaithal and INR 4,000/qtl at Gharaunda, while Gharhmukteshwar reported weaker conditions.

Rice prices influence paddy

Rice prices are emerging as an important factor for the direction of paddy prices. 1509 steam rice was reported at around INR 8,550/qtl, down by INR 350/qtl from around INR 8,900/qtl. Paddy prices had previously traded around INR 4,600-4,770/qtl. Higher paddy prices had put pressure on milling margins, resulting in cautious miller buying.

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