Indica Price Trend in 2012/2013

By CnAgri2013-07-12 11:34:00 Print China’s paddy production and consumption are estimated to be 203 million MT and 201 million MT respectively in 2012/2013. Rice imports are estimated to equal to more than 3.7 million MT paddy in the crop year. Abundant supply, plus imports of cheap rice from Southeast Asia, exerts a pressure on rice price. Indica price dropped from RMB2,630/MT in November of 2012 to RMB2,570/MT in May of 2013.
 
Indica protective procurement price rose 17.65% in 2012 and market price rose 9.13%. Indica protective procurement price is RMB2,640/MT in 2013, up 10% on the year-on-year basis. Indica market price is predicted to rise 5% this year on the year-on-year basis.
 
Indica production is estimated to generate a net profit of RMB3,100/hectare this year, suggesting a low profit/cost ratio of 22%.
 
Paddy inventory is predicted to be 92.65 million MT at the end of 2012/2013, representing a safety index of 46%.




From “China Grains Market Weekly Report”