Top Rice News: Prices In Asia Surge, And Millers Pleas Rejected

Top rice news today includes an increase in rice prices as the Iran war disrupts fertiliser and fuel supply chains, opposition by the Telangana govt. to quash Rs. 3,960 crore diversion cases.

Rice Prices in Asia Surge as Iran War Disrupts Fertiliser, Fuel Supply Chains

Amid the West Asia conflict, Rice prices have risen the most in more than two years on concerns about the supply outlook after the cost of fuel and fertiliser jumped due to the Iran war. This has led Thai farmers to leave their crops in the ground. Moreover, an Asian benchmark, Thai white rice 5% broken, jumped 10% to $423 a ton in the week ended April 8, the biggest gain since August 2023. Whereas it's a clear sign that increasing input costs are starting to affect the market, prices have been on a prolonged downtrend and were recently near the lowest in over a decade. Oscar Tjakra, a senior commodities analyst at Rabobank in Singapore, has said that some Thai farmers have halted rice cultivation since their profits simply aren't enough to cover the ballooning costs. Furthermore, he added that the challenging situation has been exacerbated by a long dry season, which has significantly reduced yields and tightened supplies of the current crop. Additionally, Tjakra said a stronger baht and higher freight and insurance costs due to the war in the Middle East contributed to the jump in rice prices.

Telangana Govt Opposes Pleas by Rice Millers to Quash ₹3,960 Crore Diversion Cases

The Telangana government has strongly rejected a batch of criminal petitions filed before the Telangana High Court by more than 360 rice millers, seeking the quashing of cases registered against them, alleging large-scale diversion of paddy and financial defaults. As per the prosecution, the millers are accused of misappropriating paddy supplied by the government for custom milling and failing to remit dues amounting to around Rs 3, 960 crore, equivalent to the value of the entrusted stocks. Notably, the state has nearly 3,600 rice mills, with a large number of default cases reported from Kamareddy, Nizamabad and Nalgonda districts. The alleged defaults range from Rs 1 crore to as high Rs 100 crore per unit.

The state government asserted that several accused millers diverted proceeds from the misused paddy into unrelated sectors such as real estate and film production, and the establishment of new mills in the names of family members. The irregularities highlighted during an investigation by the Civil Supplies Department