Basmati paddy futures on ICEX slips on profit booking

Kolkata: Basmati paddy futures on ICEX traded mildly up initially reflecting the firm trend in the spot market as buoyancy in local and export demand, but slipped into the red towards the end of trade on profit booking.

On ICEX May basmati paddy was at Rs 3,405 per 100 kg, down by Rs 7. IMD's normal monsoon rain forecast for 2020 also dampened the sentiment of bulls in farm commodities.

Permission to open transportation and agri processing units is likely to smoothen the supply pipeline in the coming weeks, which has encouraged some traders to take profit at higher level.


However, trend in spot market remains firmer in the immediate term as partial lifting of lockdown will take another week to fructify as labour shortages and unavailability of drivers remains a concerns.

-Basmati rice prices have recently touched seven-year highs as demand over strips supplies amid lockdown-led disruptions at back and front end while consumer-level stocking surges to a record, according to the All India Rice Exporters ASsociation.

AIREA former president Vijay Setia said India's exports for FY20 could have leveled the last year's level of 44,3 mln tn despite slower trend until February.