Indian farmers are getting record prices for premium rice

Farmers growing premium paddy cultivars earn at least ₹1,000 per quintal more than the government's Minimum Support Price (MSP). According to Delhi-based trade analyst S. Chandrasekaran, producers are currently fetching from ₹3,600 to ₹3,700 per quintal for premium cultivars, which is ₹1,100 above the MSP (or regional bonuses).

Production cuts have affected South India, particularly Karnataka, parts of Andhra Pradesh, and Telangana, where monsoon deficits led to a delay of half the harvest in Karnataka and a drop in reservoir water levels. As a result of these trends, popular cultivars Sona Masuri and Kolam are becoming more expensive, and this trend is expected to continue in the coming months. Furthermore, in Bengal, the acreage under Sona Masuri has decreased because low past prices prompted farmers to switch to growing the Govind Bhog cultivar, while the deficit in Karnataka is driving up prices for Katarni, Sravati, and Nellore Sanna cultivars.

Overall, India's kharif crop production is projected to be at least 10 million tonnes lower than last year's figure of 123.93 million tonnes. The sowing area for paddy has decreased by four percent to 426.81 lakh hectares. Meanwhile, as of September 1 of the current year, the Food Corporation of India held record rice reserves amounting to 39.05 million tonnes, as well as paddy stocks capable of yielding another 30.75 million tonnes of milled rice.

The market situation is also reflected in exports. Miller quotes are now valid for a much shorter time—from six hours to one day, as prices change rapidly. According to market participants, the price of parboiled rice has increased by ₹100 over a couple of weeks to ₹3,550 per quintal, while white rice has gone up from ₹3,200 to ₹3,350 per quintal.