In 2022–23, India’s rice exports have reached a record $11 billion, up 16% from FY22. However, at 21 million tonnes (MT), the shipment volume stayed roughly the same as it did in the previous FY.
Supply and demand play a crucial role in determining the prices of any agro-commodity. From rice to wheat, pulses, sugar, edible oil, and more, prices of all agro-commodities are subject to this mechanism, and speculations and reports of the same also influence their prices sharply.
There are about 6,000 different varieties of millets available worldwide. Millets can be grown in arid and semi-arid regions, unlike wheat, rice, and corn because they don’t require good soil or a lot of water to grow. Millets are gluten-free and abundant in nutrients like protein, fiber, vitamins, and minerals. Pearl millet, finger millet, foxtail millet, proso millet, and barnyard millet are just a few of the numerous varieties of millets.
Located in Asia, India is the second largest wheat producer in the world. The country accounts for approximately 14% of the total wheat produced globally. However, despite bumper wheat harvest every year, owing to the high consumption needs of its billion-plus citizens exports a mere fraction of the total production to the global wheat market.
The Zojila Tunnel is a strategic 13km long project in the Sonmarg area of central Kashmir, the construction of which is proceeding at a fast pace. The longest tunnel in Asia will provide all-weather road connectivity to the Ladakh region, enabling seamless military movement and ensuring uninterrupted traffic on the Srinagar-Leh Highway all year long.
The price of any commodity is determined by the demand that the commodity generates and the supply of the commodity in the market.
If the demand is high/stable and the supply is short, the prices rise. On the other hand, if the demand remains stable or low and the supply increase, then the prices fall and as it seems, the latter has been the reason behind the drop in soybean prices over the last week.
The price of any commodity be it rice, wheat, or sugar, depend upon market factors that indicate whether or not the commodity will have a demand in the market. In case it seems that the demand is strong reflecting higher market interest to buy, the price of the commodity rise. Else, in case of low market demand, the price of the commodity falls.
Leading rice exporters saw rates for the staple grain rise this week as a result of rising orders. Also, Bangladesh increased the price it will pay farmers for the crop they will harvest in the coming season in an effort to maintain stability in domestic prices.
India is the 2nd largest wheat producing country and is amongst the largest exporters and consumers of the commodity. In an effort to rein in rising domestic prices, India, the second-largest producer of wheat in the world, banned wheat exports in May 2022.
On 12th April 2023, the May NY world sugar #11 (SBK23) closed down by -0.32 (-1.31%), and the May London white sugar #5 (SWK23) closed down by -8.60 (-1.22%). India is the world’s largest sugar producer and exporter following Brazil.
