Milled rice production in India will be reduced. This season the decline is predicted to amount to 6 percent or 98.5 mln. tons. Reduction of crop acreage and delay of sowing campaign have resulted from the deficit of downpour this season.
According to FAO, 98.5 mln. tons is the most optimum volume that can be produced this year. However, by the end of the season precipitations will play the major role. 45 percent of farmlands have irrigation systems, and the other part is waiting for monsoon rains.
Precipitations are a rare occurrence at the north and the south of the country, where rice is grown. Meteorologists have stated that according to the information announced on August 28, precipitations is 13 percent behind the norm.
The chart below reflects the current state of affairs in the market of rice: the 4th wave is expected to finish in the nearest future; it will be followed by second testing of the level of support 14.88 within wave [v] of (3). 5-wave descending structure may be broken if major levels of resistance 15.64-15.82 are overcome.
