Commodity Outlook – Paddy

Sowing period: June to October
Harvesting period: November to February
Crop season: Kharif

Sowing period: November to February
Harvesting period: March to June
Crop season: Rabi

Key growing regions (Paddy Kharif):

  1. Karnataka – Raichur, Koppal, Bellary, Shimoga, Davangere
  2. Uttar Pradesh – Hardoi, Kanpur, Fatehpur, Bahraich, Raebarelli
  3. Tamil Nadu – Villupuram, Thiruvannamalai, Vellore, Cuddalore
  4. Madhya Pradesh – Raisen, Hoshangabad, Seoni, Rewa, Gwalior

Key growing regions (Paddy Rabi):

  1. West Bengal – Burdwan, Birbhum, Murshidabad, Coochbehar
  2. Chattisgarh – Balod, Dhamtari, Balodabazar, Mahasamund, Raipur
  3. Andhra Pradesh – Kurnool, West Godavari

Production and Sowing estimates:

Kharif:

  • As per Ministry of Agriculture latest sowing report, Paddy Rabi sowing area till February 08, 2019 was 25.36 lakh hectares (LH) which were down by 16.22 per cent from last year’s same period of 35.29 LH and up by 0.7 per cent from the normal area of 29.36 LH.
  • Andhra Pradesh Agriculture Ministry has increased the production estimation of Paddy in the forthcoming Kharif season to 84.59 lakh tonnes (lt).

Rabi:

  • According to the Ministry of Agriculture, the production target of Paddy in the next season is 84.6 lakh tonnes (lt) up by 8.07 per cent compared to 78.28 lt last year.
  • The Central Government asked the State Governments to give a subsidy of Rs. 500 per quintal on the old Paddy seed and to give the incentive of Rs. 1,000 per quintal for the Paddy of a new variety, the purpose behind this is to reduce the usage of old seeds.

Market commentary: Price outlook

  • Prices of Paddy in the physical markets have been trading on an average above the MSP levels.
  • Physical Market prices of Paddy have started to accelerate due to the decrease of its arrivals in the mandis.

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