Rice prices in eastern India have declined by 16% over the past ten days, driven by two key factors: Bangladesh’s decision to seal its land ports with India and a surge in local harvests within the neighboring country.
According to traders, the reduced cross-border trade has eased demand pressure from Bangladesh, while the availability of fresh crops in the region has increased supply. The combined effect is pulling prices down noticeably and the trend may continue if the current conditions persist.
Market watchers suggest that if Bangladesh maintains restrictions and domestic harvests remain strong, rice prices could fall further in the coming weeks, potentially benefiting Indian consumers but impacting exporters and farmers in border states like West Bengal and Assam.
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In the first three weeks of the 2025-26 wheat procurement season (April-June), government agencies have accelerated purchases at Minimum Support Price (MSP), with arrivals in mandis gaining momentum. The procurement drive, led by the Food Corporation of India (FCI) and state agencies, is expected to peak within the next week.
So far, over 11.85 million tonnes (MT) of wheat have been procured, marking an 85% jump compared to the same period last year. Arrivals have crossed 17 MT across major states, with Madhya Pradesh leading at 4.71 MT, followed by Haryana (4.51 MT), Punjab (1.56 MT), Rajasthan (0.64 MT), and Uttar Pradesh (0.4 MT).
The government aims to procure 31 MT of wheat this season, largely from Punjab (12.4 MT), Haryana (7.5 MT), Madhya Pradesh (6 MT), Uttar Pradesh (3 MT), Rajasthan (2 MT), and Gujarat (0.1 MT). Officials are optimistic about meeting the target for the first time since the 2021-22 season, thanks to a healthy crop output across major producing regions.
With FCI supplying around 18.4 MT annually for welfare schemes, additional procurement will strengthen buffer stocks and support market intervention through open sales to stabilize prices. After a record 43.3 MT procurement in 2021-22, volumes had dipped to 18.8 MT in 2022-23 but have rebounded to over 26 MT in the past two years.
Explore the latest edition of Journal of Supply Chain Magazine and be part of the JOSC Daily News Bulletin.
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Journal of Supply Chain is a Hansi Bakis Media brand.