The Hindu Business Line : Basmati rice surges by Rs 400 a quintal on exporters' demand

NEW DELHI: Rates of wholesale super basmati rice, mainly used for export purpose, shot up by Rs 400 per quintal in the national capital on Tuesday on hectic buying by exporters.

Trading sentiment remained bullish despite the government imposing an export duty of Rs 8,000 per tonne on basmati rice. Super basmati rice prices flared up by a whopping Rs 400 to Rs 8,000 a quintal while other varieties of basmati joined the firm trend and recorded moderate gains.

Traders said shortage of ready stocks of the basmati rice of super quality, hardly a two per cent of the total rice production, mainly pushed up the prices in the wholesale grain market here.

"Pick up in demand from exporters amid firming US dollar against the rupee and a higher demand in global markets, raised expectations among traders for a better return," said Delhi-based rice merchant Pawan Aggarwal.

Since demand for rice in global markets has risen nearly 50 per cent, the government measures to impose import duty failed to check the rising trend, he said.

The firming trend also spilled over a wide front as basmati rice (common) surged by Rs 300 at Rs 6700-6870 a quintal and non-basmati IR-8 rice traded Rs 100 higher at RS 1255-1380 a quintal.

However, basmati rice (Shri Lal Mahal) traded at last level of Rs.8,000 a quintal. - PTI
Related Stories:
Basmati exporters upset over $200/t cess

Prev: Gold, silver recover on brisk buying
Next: India, Malaysia to ink multi-million dollar railway deal

Business Line | NUS Index |